PARKWAY MINERALS NL
(formerly Potash West NL)
A.C.N. 147 346 334
Annual Report
For the year ended
30 June 2017
Parkway Minerals NL
A.C.N. 147 346 334
Contents to Financial Report
Corporate Directory
Chairman’s Letter
Directors’ Report
Auditor’s Independence Declaration
Corporate Governance Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Tenement Register
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Parkway Minerals NL
A.C.N. 147 346 334
Corporate directory
Directors:
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Company Secretary:
Elizabeth Hunt
Auditor:
Ernst & Young
Ernst & Young Building
11 Mounts Bay Road
Perth WA 6000 AUSTRALIA
Telephone (+61 8) 9429 2222
Facsimile (+61 8) 9429 2436
Share Registry:
Advanced Share Registry
160 Stirling Highway
Nedlands WA 6009 AUSTRALIA
Telephone (+61 8) 9389 8033
Facsimile (+61 8) 9262 3723
Registered and Principal Office
Level 1
675 Murray Street
West Perth WA 6005
Telephone (+61 8) 9479 5386
Facsimile (+61 8) 9475 0847
Website www.parkwayminerals.com.au
Email info@parkwayminerals.com.au
Stock Exchange Listing
Parkway Minerals NL shares are listed on the Australian Securities Exchange (ASX code: PWN), OTC Pink
(OTC Pink code: PWNNY) and Frankfurt Stock Exchange (Ticker: A1JH27).
Solicitors
Price Sierakowski
Level 24, St Martin’s Tower
Perth WA 6000 AUSTRALIA
Telephone (+61 8) 6211 5000
Facsimile (+61 8) 6211 5055
Bankers
National Australia Bank
Ground Floor
100 St Georges Terrace
Perth WA 6000 AUSTRALIA
Telephone: (+61 8) 9441 9313
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CHAIRMAN’S LETTER
Dear Shareholder
Parkway Minerals is a fertilizer developer. It distinguishes itself from its peers by controlling a vast deposit
of greensand capable of supplying phosphates and potash to nearby established and emerging markets for
many decades. Significantly its focus on the greensand deposits of the Dandaragan Trough provide not
only access to phosphate, but also potassium which can be recovered as sulphate of potash. The
importance of this should never be underestimated, as markets for sulphate of potash has remained strong
even during recent years’ decline in the broader potash market. This situation may well underpin the long-
term fortunes of our projects. Parkway Minerals remains the only company to successfully demonstrate a
commercial means of recovering sulphate of potash from greensands.
The world population is forecast to grow between 30 and 50% in the next 35 years, reducing the arable
land per person by approximately 40%. Add to that improving diets in the developing world and it is
inevitable that more food will be required, from less area. Improvements in food production and the food
supply chain are imperative to reduce malnutrition and maintain quality of life. Fertilisers are one of the
most cost-effective methods of achieving this. Parkway Minerals is fortunate in controlling one of the
world’s largest known greensand deposits which can supply two of the three critical macrofertilisers,
phosphorous and potassium. The Dandaragan Trough, located only 150km north of Perth in Western
Australia, is capable of meeting the potash and phosphate requirements of our region for many decades.
The project location offers an unsurpassable competitive advantage as Western Australia currently imports
all of its phosphate and potash requirements, our regional neighbours are also net importers.
Resource development has focussed on the Dinner Hill area, in the north-west sector of the Trough. In
particular the phosphate potential of Dinner Hill has been evaluated, as it offers the opportunity of
advancing the project to a cash generating position with the lowest possible capital exposure, through the
production of single superphosphate. This option has minimal technical risk as the processing methods are
well established on a global basis.
It is planned that the cashflow from phosphate production will underpin the development of a potash
processing facility, using the K-Max process to exploit the very large tonneages of glauconite (a potassium-
rich mica), present within the extensive greensands of the Dandaragan Trough. The potassium can be
recovered as sulphate of potash (SOP), which has not faced the weaker market conditions of the more
commonly traded potassium chloride (MOP).
To minimise the dilution of shareholders with the development of the first mine in the Dandaragan Trough,
to be located at Dinner Hill, we are investigating the possibility of forming a development Joint Venture. We
have been working with FTI Consulting to identify and engage with potential partners. Whilst there has
been interest in the project, to date there have been no agreements completed.
Parkway is developing a salt lake project, prospective for sulphate of potash, at Lake Barlee, north of
Southern Cross, in Western Australia. This has the potential to be a viable source of fertiliser for WA and
the local region.
Parkways 55% shareholding in East Exploration Pty Ltd has been vended into Davenport Resources, which
listed on the ASX in January 2017. Parkway owns 19.25 M shares (26% at the IPO), after Davenport
raised $5.25 M at 20c/share.
During the year Parkway accepted an offer from Lithium Australia (ASX:LIT) for its Lepidico (ASX :LPD)
shares. As Parkway and Lithium Australia have a common director, negotiations, discussions and
decisions on this issue were carried out by the independent Parkway and Lithium Australia directors.
Parkway now owns 7.3 million Lithium Australia shares.
Fertiliser markets have generally weakened in the last year. The bulk potash market, which is MOP,
produced mainly in Canada and Eastern Europe, has remained weak with supply exceeding demand,
several operations have been mothballed or closed.. However the SOP market has remained strong, with
the premium for SOP, over MOP, increasing from ~ 30% to 70 to 80%. SOP is a premium product, used for
crops that are chloride intolerant, such as many vegetables. Parkway Minerals’ ability to recover SOP from
greensand sets it apart from all of its competitors.
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A.C.N. 147 346 334
CHAIRMAN’S LETTER(continued)
the phosphate market
Similarly,
its
resource/supply base. China is the dominant producer, with over 40% of world production. However the
international export trade is dominated by a handful of north african nations in which political intervention
remains a risk.
is characterised by structural weaknesses within much of
It is pleasing to see a level of renewed interest in the exploration sector, with support coming into a number
of specific sectors. Several years of under-investment in exploration has led to a situation where there is a
shortage of good projects. As always, the cyclical nature of business will see a renewed appetite for
exploration and development risk, in time. Parkway Minerals is well placed to take advantage of that, and
to achieve our goal of providing economic fertiliser products to meet both Australian and Asian demand.
Finally, thanks to all Potash West shareholders for their support over the last year, and to staff for helping
the company achieve its objectives in such a difficult economic climate.
Adrian Griffin
Chairman
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Directors’ Report
Directors
The names and details of the Company’s directors in office during the financial year and until the date of
this report are set out below, directors were in office for the entire year unless otherwise stated.
Adrian Griffin ( Non-executive Chairman)
Patrick McManus (Managing Director)
Chew Wai Chuen (Non-executive Director)
Natalia Streltsova (Non-executive Director)
Names, qualifications, experience and special responsibilities
Adrian Griffin Non-Executive Chairman
Adrian Griffin, an Australian-trained mining professional, has had exposure to metal mining and processing
worldwide during a career spanning more than three decades. A pioneer of the lateritic nickel processing
industry, he has helped develop extraction technologies for a range of minerals over the years. Today,
Adrian specialises in mine management and production. He is a former Chief Executive Officer of Dwyka
Diamonds Limited, an AIM- and ASX-listed diamond producer, was a founding director and executive of
Washington Resources Limited and also a founding director of Empire Resources Limited, Ferrum
Crescent Limited and Reedy Lagoon Corporation Limited. Moreover, Mr Griffin was a founding director of
ASX-listed Northern Minerals, of which company he is currently a non-executive director. He is also
managing director of ASX-listed Lithium Australia NL.
Other listed company directorships during the last 3 years:
Northern Minerals Ltd (Director June 2006 – present), Reedy Lagoon Corporation Ltd (Director June 2014 –
present) and Lithium Australia NL (Director February 2011 – present).
Adrian Griffin is also a member of the Audit & Risk Committee, Remuneration Committee (Chairman) and
the Nomination Committee.
Patrick McManus Managing Director
Patrick McManus has a degree in mineral processing from Leeds University and an MBA from Curtin
University. A mining professional for more than 30 years, his work has taken him to many sites within
Australia and overseas, including Eneabba and the Murray Basin in Australia, and Madagascar, Indonesia
and the United States. During that time, Patrick has worked in operational, technical and corporate roles for
RioTinto, RGC Limited and Bemax Resources Limited. He was a founding director and, from January 2007
to March 2010, managing director of ASX-listed Corvette Resources Limited.
Other listed company directorships during the last 3 years:
Tungsten Mining NL (Director December 2012 – January 2015)
Davenport Resources NL (Chairman January 2017 – present).
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Directors’ Report (continued)
Chew Wai Chuen Non-Executive Director
Mr Chew was a financial advisor with more than 17 years of industry experience, specialising in the
provision of corporate and wealth management for ultra-high net worth individuals. With experience in
South East Asia capital market and extensive networks of clients based in Singapore and Malaysia, Mr
Chew provides important contributions to the Board. He has successfully worked with a number of financial
institutions in Singapore such as, Standard Chartered Bank, OCBC Bank and Credit Suisse Singapore.
Mr Chew is now a Managing Partner with a financial advisory firm, providing personal investing planning
and wealth management for high net worth individuals and has a good track record of investment into junior
mining companies in Australia and South East Asia.
Other listed company directorships during the last 3 years:
Tungsten Mining NL (Director April 2014 – present)
Chew Wai Chuen is also a member of the Audit & Risk Committee, Remuneration Committee and the
Nomination Committee.
Natalia Streltsova Non-Executive Director
Dr Natalia Streltsova is a senior executive with over 26 years’ experience in the minerals industry of which
15 years, prior to forming her own consulting business in 2014, was spent in various leadership and
technical roles with major mining houses including Vale SA (formerly CVRD), BHP Billiton and WMC
Resources Limited. In all of these roles, there was considerable interaction with operations to provide
support as well as to identify and implement innovative projects leading to increased production and cost
reduction.
Dr Streltsova has a strong background in mineral processing and metallurgy with broad international
experience in project, technical and business development capacities. Dr Streltsova has previously been a
director on a number of Vale subsidiary boards as well as on several collaborative industry boards. She is
also a Non-Executive Director on ASX listed Neometals Limited.
Other listed company directorships during the last 3 years:
Neometals Limited (Director April 2016 – present)
CopperMoly Limited (Director September 2013 – March 2014)
Natalia Streltsova is also a member of the Audit & Risk Committee, Remuneration Committee and the
Nomination Committee (Chairman).
Company secretary
Elizabeth Hunt (appointed 15 August 2017)
Elizabeth Hunt has over fifteen years’ corporate and accounting experience with a particular interest in
governance. Elizabeth Hunt has been involved in the IPO management, corporate advisory and company
secretarial services,
reporting and ASX and ASIC compliance
management. Elizabeth Hunt holds a BSc degree in Sustainable Development and has completed a
Master of Accounting. She is a Fellow of the Governance Institute of Australia and is a Graduate of the
Australian Institute of Company Directors. Elizabeth Hunt is currently also Company Secretary of a number
of ASX-listed entities.
financial accounting and
Amanda Wilton-Heald (resigned 15 August 2017)
Ms Wilton-Heald is a Chartered Accountant and has more than 19 years’ experience within Australia and in
the United Kingdom. That experience has included the auditing of the company financial statements of both
ASX- and LSE-listed companies, an accounting role with an AIM-listed company in the UK specialising in
the provision of collaboration technology, and involvement in the ASX listings of junior exploration
companies, as well as the provision of corporate advisory and company secretarial services.
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A.C.N. 147 346 334
Directors’ Report (continued)
Interests in the shares and options of the company and related bodies corporate
As at the date of this report, the interests of the directors (including related parties) in the shares and
options of the company were:
Number of ordinary
shares
Number of options
over ordinary
shares
Partly paid
contributing
shares
9,315,634
10,860,829
1,972,335
1,168,805
-
-
-
-
4,950,217
3,445,273
326,395
139,973
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Dividends
No dividend has been paid or declared since the start of the financial year and the directors do not
recommend the payment of a dividend in respect of the financial year.
Principal activities
The principal activity of the entity during the financial year was the exploration for minerals, namely
phosphate and potash.
Operating and financial review
Operating results for the year
The loss after income tax expense for the year ended 30 June 2017 was $1,784,884 (2016: $184,648).
Financial Performance
Total income
Loss before tax
Loss after income tax expense
Loss per share (cents)
2017
$
4,238,200
(1,399,013)
(1,784,884)
(0.43)
2016
$
3,126,825
(184,648)
(184,648)
(0.07)
%
Increase/
(Decrease)
35,54%
657.66%
866.64%
514.30%
The financial position of the Group is presented in the attached Consolidated Statement of Financial
Position.
OPERATING AND FINANCIAL REVIEW
Introduction
During fiscal 2016-2017 Parkway Minerals NL (“Parkway” or “the Company”) continued the groundwork to
establish a global phosphate and potash supply business primarily through our flagship Dinner Hill within
the Dandaragan Trough Fertiliser Project, close to Perth in Western Australia. The Company has
established a new project, Lake Barlee, which has potential for brine extraction for sulphate of potash. The
company monetized the South Harz potash project by vending it into Davenport Resources Limited, which
was listed on the ASX in January 2017.
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A.C.N. 147 346 334
Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Key 2016-17 achievements included:
•
Identifying and claiming the Lake Barlee salt lake project
• Upgrading the Dinner Hill Resource and Exploration Target
• Maiden Exploration Targets on four advanced prospects within the Dandaragan Trough Project
• Continuing the Dinner Hill Pre-Feasibility Study (PFS) ,
• Completing the disposal of 55% interest in East Exploration Pty Ltd. Following this disposal,
Parkway owns 19.25 M Davenport shares, plus performance shares.
Our business strategy:
Parkway remains focused on fertiliser projects that meet the criteria of:
large-scale,
in regions of the world dependent on importing fertiliser products, with
•
•
• existing and robust export infrastructure, and
•
low sovereign risk.
Parkway’s current two projects, Dinner Hill within the Dandaragan Trough and Lake Barlee, both in Western
Australia, meet these criteria and have the potential to be major fertiliser suppliers for many decades.
Similarly the South Harz project in central Germany, is located within a region with several significant
historic potash mines.
PROJECT SUMMARY
LAKE BARLEE
Parkway has applied for exploration licences covering the bulk of Lake Barlee, a large salt lake between
Southern Cross and Sandstone, in Western Australia (figure 1). The project currently consists of three
exploration licences, of 582 km2 and nine licence applications, covering 1337 km2. A reconnaissance trip
collected brine samples with potassium values greater than 2000 mg/litre. A geophysical survey has been
planned and will be carried out following the granting of key licences.
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A.C.N. 147 346 334
Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 1: Lake Barlee tenements
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
DANDARAGAN TROUGH
The Company continues to advance the Dinner Hill potash and phosphate deposit, 175km north of Perth in
Western Australia (Figure 2). Dinner Hill forms part of the larger Dandaragan Trough Fertiliser Project,
which covers an area of more than 1,050km2. Sedimentary deposits of greensands within the trough
contain glauconite, a potash rich mica, and phosphate nodules. The project objective is to produce potash
and phosphate fertilisers and a range of valuable by-products from the glauconite and phosphate present
within the sediments of the Dandaragan Trough.
Figure 2: Dandaragan Trough and Dinner Hill prospect location
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
The development strategy is to commence operations with a project producing phosphate fertiliser, from the
phosphate nodules and mineralisation that occurs through the greensand sequences. This approach offers
the advantage of using well established technology and requires a lower capital requirement to commence
production and generate a positive cashflow. Stage 2 would follow and would use Parkways 100% owned
K-Max technology to produce sulphate of ptash (“SOP”), high magnesium SOP, alum, phosphoric acid and
iron oxide.
Scoping Study Strategy
The scoping study (ASX release 30 September 2015) examined the production of single superphosphate
(SSP) at a site near the Dinner Hill deposit for 40 years. The ore will be processed through a beneficiation
and acidulation plant, Figure 3. The pelletised product will be transported by road to Moora and dispatched
by rail to Kwinana and/or Geraldton for local and international distribution. The study assumed using
sulphur sourced internationally and delivered to site from Kwinana, Western Australia. The beneficiation
plant may produce a glauconite concentrate, which will be stockpiled for later treatment.
Figure 3: Phosphate Process Flowsheet
Stage 2, the Integrated K-Max plant, will employ the Company’s 100%-owned patented K-Max process to
produce potassium sulphate (SOP), potassium magnesium sulphate (KMS), phosphoric acid, iron oxide
and aluminium sulphate Figure 3. The scoping study for the integrated plant has not been updated since
the ASX release of 13 January 2015.
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A.C.N. 147 346 334
Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 4: K-Max Process Flowsheet
Recognising the disparity between the Company’s current market capitalisation and the estimates of capital
required to commence mining operations, Parkway is looking for a partner to assist in the development of
the Dinner Hill project. FTI Consulting was appointed to assist Parkway Minerals in marketing the Dinner
Hill project to potential financial and strategic investors. This marketing drive continues in the current
financial year in parallel with the prefeasibility study.
Annual Mineral Resource Statement as at 30 June 2017
The Mineral Resource at Dinner Hill was updated in September 2017, reflecting changes driven by
metallurgical testwork.
The September 2017 resource update used drilling carried out in between 2011 and 2016 comprising a 222
aircore drill holes for 8,143m and 93 SG samples taken from four PQ diamond drill holes completed in 2012.
The resource covers an area of some 52 km2 (Figure 5).
The Dinner Hill Deposit contains an Indicated Mineral Resource of phosphate mineralisation of 160Mt at
2.45% P2O 5 and 4.2% K2O and an Inferred Mineral Resource of 470Mt at 1.7% P2O 5 and 4.4% K2O.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Within the phosphate resource area there is a Potash Resource of 630Mt at 4.4 % K 2O (Indicated 160 Mt at
4.2% K 2O, Inferred 470Mt at 4.4% K2O). An additional Indicated Mineral Resource of 50Mt at 2.65% K 2O
and an additional Inferred Mineral Resource of 250Mt at 2.6% K 2O occur marginal to the phosphate
resource.
Resource
Phosphate
Potash
Category
Indicated
Inferred
Total
Tonnes
(Mt)
160
470
630
P2O5
(%)
2.45
1.7
1.85
Potash resources included within
the phosphate resource area
Indicated
Inferred
Potash resource outside the
phosphate resource area
Total Potash Resources
Totals
Indicated
Inferred
Totals
Indicated
Inferred
Totals
NB: Totals may differ from sum of individual items due to rounding
Table 1 Dinner Hill Resource
Comparison with Previously Estimated Mineral Resources
160
470
630
50
230
280
210
700
910
K2O
(%)
4.2
4.4
4.3
4.2
4.4
4.3
2.65
2.6
2.6
3.8
3.8
3.8
The previously reported phosphate Mineral Resource for Dinner Hill was estimated to be 250Mt at 2.9%
P2O5 above a lower cut-off grade of 2.15% P2O5. The phosphate resource herein reported is 630Mt at 1.9%
P2O5 above a lower cut-off grade of 1.0% P2O5. The tonnage change is related to:
•
•
Reduction in Indicated Resource tonnage, due to metallurgical constraints
Increase in Inferred Resources, due to conversion of material from the Exploration Target
The current potash Resource of 910Mt at 3.8% K2O compares with the previously reported 195Mt at the
same grade. The increase in tonnage reflects material being converted from Exploration Target to Inferred
Resource.
The project tenements cover two virtually horizontal greensand formations within the Cretaceous Coolyena
Group: the Poison Hill Greensand and the Molecap Greensand. Over most of the area of the deposit, they
are separated by the Gingin Chalk and in places are underlain by a thin pebble horizon containing
phosphatic nodules. An average thickness of about 11m of surficial, mostly sandy, cover overlies the
greensand units. The greensands and the chalk contain significant amounts of phosphate as grains and
nodules of fluorapatite. They also contain significant potash within the mineral glauconite. Figures 6 is a
cross section through the deposit showing the geology and summary intersections through potash and
phosphate mineralization.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
This Indicated resource is being used to develop an optimised mining plan for mining Dinner Hill. Two
development options will be considered:
1.
2.
Mining the phosphate rich parts of the deposit, to produce single superphosphate, for the life of
the Indicated resource.
Using the phosphate mining project as a “springboard” to generate cashflows, some of which
would be used to complete the development work for the K-Max process. In this model, the K-
Max operation will commence ~ 5 years after the phosphate project.
Figure 5: Dinner Hill Resource boundaries (phosphate resource blue, potash resource green), drill-
hole locations, and tenement boundaries (red).
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 6: Dinner Hill Deposit – Cross-section 663 7200N – showing geological formations and
intersection grades
Exploration Targets
As part of the resource update for Dinner Hill, Exploration Targets were updated. The Dinner Hill
Exploration Target has been reduced, as displayed in Table 2:
Previous (22 July 2015)
Current (26 Sept 2017)
Phosphate
Potash, K-Max
Tonnes,
Millions
550 to 800
250 to 300
%P2O5
2-2.8
1.5-1.8
Tonnes,
Millions
1,200 to 1,800
800 to 1,600
%K2O
3.5-4.0
3.8-4.4
Table 2 Dinner Hill Deposit Exploration Target
Note: The potential quantity and grade of the targets are conceptual in nature, as there has been insufficient exploration
to estimate Mineral Resources over their areas and as it is uncertain if further exploration will result in the estimation of
Mineral Resources.
The reduction is a function of material being reclassified to Inferred Resource, and extending the Target
area, based on recent drilling. Figure 7 shows the Dinner Hill Resource and Exploration Target areas.
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Figure 7: Dinner Hill Resources and Exploration Target Plan
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Additional Exploration Targets have been identified on four advanced prospects within the Dandaragan
Trough Project area to the south of the Dinner Hill Deposit, within the same geological sequence. The
location of the Exploration Target areas is shown in Figure 8 and the target sizes and grades are
summarised in Table 3:
Project Area
Badgingarra Road
Dambadgee West
Dambadgee
Attunga
Totals
Phosphate
Tonnage (Mt)
60 to 100
300 to 350
200 to 250
30 to 45
590 to 745
Phosphate
Grade P2O5
2 to 3
1.5 to 2
1.5 to 2.5
1.5 to 2
1.5 to 2.5
Potash
Tonnage (Mt)
600 to 900
2000 to 2750
1200 to 1500
750 to 1000
4550 to 6150
Potash
Grade K2O%
4 to 5
3 to 4
3 to 3.5
3.5 to 4
3.2 to 4
Table 3: Dandaragan Trough Fertiliser Project Exploration Targets
Note: The potential quantity and grade of the targets are conceptual in nature, as there has been
insufficient exploration to estimate Mineral Resources over their areas and as it is uncertain if further
exploration will result in the estimation of Mineral Resources.
Figure 8: Dandaragan Trough Fertiliser Project Exploration Targets
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
These additional Exploration Targets indicate the potential of the Dandaragan Trough to be a long-term
source of phosphate and potash fertilisers to local, regional and international agriculture.
GERMANY
South Harz Project
Following the successful IPO of Davenport Resources in January 2017, Parkway owns 19.25 M shares of
Davenport Resources, plus:
•
•
17.88 M performance shares converting to ordinary shares on a JORC compliant Inferred
Resource
17.88 M performance shares, converting to ordinary shares on a decision to mine
Davenport owns two exploration licences in the South Harz region of central Germany (Figure 9).
More than 500 million tonnes of potash ore were extracted from the South Harz region in the 22 year period
between 1970 and 1992, producing more than 100 million tonnes of potash fertiliser.
Figure 9: South Harz project location
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Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Davenport is working with Ingenieurgesellschaft Geotechnik und Bergbau GmbH (ERCOSPLAN) on this
project. ERCOSPLAN has a long association with the German potash industry. In its former role, as the
Central Engineering Office for the East German potash mining industry, ERCOSPLAN was closely
associated with exploration drilling in the South Harz region in the 1970s and 80s and has access to most
of the summary exploration data. ERCOSPLAN has estimated Exploration targets for both Küllstedt and
Gråfentonna, these are reported on the Davenport website.
Subsequent to the year-end, Davenport announced a proposal to buy 216 km2 of historic mining licences
from the German government. The purchase is being finalised.
K-Max technology
Parkway Minerals owns 100% of the intellectual property of the K-Max process which unlocks the valuable
elements that exist within the vast glauconite deposits of the Dandaragan Trough. We have been granted a
patent for this technology. The K-Max process uses hot sulphuric acid to leach glauconite at atmospheric
pressure, extracting potassium and other elements to make a range of products, including sulphate of
potash (SOP) high magnesium SOP, (KMS), phosphoric acid, aluminium sulphate (alum) and iron oxide.
The process is also applicable to other mica-like minerals, such as phlogopite.
There has been interest from other companies looking at similar deposits and the Company is investigating
opportunities to licence the technology.
Parkway owned 97 million shares in the listed company Lepidico Ltd (ASX:LPD). In February 2017
Parkway agreed to sell those shares in return for shares in Lithium Australia (ASX:LIT). Parkway now owns
7.3 million LIT shares.
Lithium is a commodity which is facing very strong demand growth. Lithium Australia has developed a
business model focussed on lithium, both exploring for lithium ores and using new technology to unlock
value from lithium ores, including unconventional hard-rock minerals. LIT is active in several parts of the
world in exploration in its own name and joint ventures.
Corporate Activity
Subsequent to the year end Parkway Minerals raised $850,000 via a placement to sophisticated investors.
A Share Purchase Plan is in progress.
Parkway owns 19.25 million DAV shares and 7.3 million LIT Shares
Parkway monitors activities and opportunities that maybe relevant to the company’s objectives. This may
include expanding or changing the scope of existing projects or engaging with third parties on other projects.
If a proposal advances, details would be announced in accordance with the Company’s continuous
disclosure obligations.
Competent Person’s Statements
Dandaragan Trough Project
The information in this report that relates to the estimation of the Mineral Resources is based on and fairly
represents information and supporting documentation prepared by J.J.G. Doepel, who is a member of the
Australasian Institute of Mining and Metallurgy. Mr. Doepel, Principal Geologist of the independent
consultancy, Continental Resource Management Pty Ltd, has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration. He is qualified as a Competent Person as defined in
the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. This report is issued with Mr. Doepel’s consent as to the form and context in which the Mineral
Resource appears.
20
Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
OPERATING AND FINANCIAL REVIEW (continued)
Forward-looking statements are necessarily based upon a number of estimates and assumptions related to
future business, economic, market, political, social and other conditions that, while considered reasonable
by Parkway Minerals, are inherently subject to significant uncertainties and contingencies
Parkway Minerals disclaims any intent or obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or results or otherwise. The words “believe”, “expect”,
“anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”,
“will”, “schedule” and other similar expressions identify forward-looking statements. All forward-looking
statements made in this announcement are qualified by the foregoing cautionary statements. Investors are
cautioned that forward looking statements are not guarantees of future performance and accordingly
investors are cautioned not to put undue reliance on forward-looking statements due to the inherent
uncertainty therein.
Significant changes in the state of affairs
There have been no significant changes in the state of affairs for the year.
Significant events after the balance date
Subsequent to the reporting date, the Company undertook a capital raising, raising a total of $850,000
before costs at $0.01 per share. A total of 85,000,000 ordinary shares have been issued as a result of the
capital raising. The Company has also announced share purchase plan, expected to raise an additional $1
million.
There have not been any other matters that have arisen after balance date that have significantly affected,
or may significantly affect, the operations and activities of the Company, the results of those operations, or
the state of affairs of the Company in future financial years other than disclosed elsewhere in this annual
report.
Likely Developments and expected results
The Company will advance the Lake Barlee project with the objective of developing a project to produce
sulphate of potash from the lake brines. It is expected we will complete a drilling programme within the next
six months. The Company will also advance the Dinner Hill project, within the Dandaragan Trough through
exploring opportunities to progress both the phosphate and the K-Max projects.
Environmental regulation and performance
The Company’s activities are subject to Australian legislation relating to the protection of the environment.
The Company is subject to significant environmental legal regulations in respect to its exploration and
evaluation activities. There have been no known breaches of these regulations and principles.
Indemnification and Insurance of directors and officers
The Company has entered into deeds of access and indemnity with the officers of the Company,
indemnifying them against liability incurred, including costs and expenses in successfully defending legal
proceedings. The indemnity applies to a liability for costs and expenses incurred by the director or officer
acting in their capacity as a director or officer.
Except in the case of a liability for legal costs and expenses, it does not extend to a liability that is:
(a)
(b)
owed to the Company or a related body corporate of the Company;
for a pecuniary penalty order under section 1317G or a compensation order under section 1317H or
section 1317HA of the Corporations Act 2001; or
(c) owed to someone other than the Company or a related body corporate of the Company where the
liability did not arise out of conduct in good faith.
21
Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Indemnification and Insurance of directors and officers (continued)
Similarly, the indemnity does not extend to liability for legal costs and expenses:
(d)
(e)
(f)
in defending proceedings in which the officer is found to have a liability described in paragraph (a), (b)
or (c);
in proceedings successfully brought by the Australian Securities and Investments Commission or a
liquidator; or
in connection with proceedings for relief under the Corporations Act 2001 in which the court denies
the relief.
During or since the financial year, the Company has paid premiums in respect of a contract insuring all the
Directors and Officers. The terms of the contract prohibit the disclosure of the details of the insurance
contract and premiums paid.
Indemnification of auditors
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part
of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an
unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial
year.
Share Options
As at the date of this report there were 22,796,691 (2016: 23,296,691) unissued ordinary shares under
options.
Option holders do not have any right, by virtue of the option, to participate in any share issue of the
company or any related body corporate.
Non-audit services
The Company may decide to employ the auditor on assignments additional to its statutory audit duties
where the auditor’s expertise and experience with the Company are important. The directors are satisfied
that the provision of non-audit services is compatible with the general standard of independence for audits
by the Corporations Act 2001. The nature and scope of each type of non-audit service provide means that
auditor independence was not compromised.
Details of the amounts paid or payable to the auditor, Ernst & Young, for non-audit services provided during
the year are set out below.
Remuneration of the auditor of the Company for:
- research & development tax concession
- tax compliance
2017
$
2016
$
15,169
4,635
19,804
13,303
4,635
17,938
22
Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Directors’ meetings
Meetings of directors held and their attendance during the financial year were as follows:
Name of
director:
Directors’
meetings
attended
Directors’
meeting
held
whilst in
office
Audit and
Risk
Committee
meetings
held
Audit and
Risk
Committee
meetings
attended
Remuneration
Committee
meetings held
Remuneration
Committee
meetings
attended
Nomination
committee
meetings
held
Nomination
committee
meetings
attended
Adrian
Griffin
Patrick
McManus
Chew Wai
Chu
Natalia
Streltsova
6
6
6
6
6
6
6
6
2
-
2
2
2
-
2
2
1
-
1
1
1
-
1
1
1
-
1
1
1
-
1
1
Remuneration Report (audited)
This Remuneration Report outlines the director and executive remuneration arrangements of the Company
in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purpose of
this report, Key Management Personnel (KMP) of the Company are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Company,
directly or indirectly, and includes executives of the Company. The information provided in this
remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.
The remuneration report for 2016 was adopted at the 2016 Annual General meeting. 27,578.557 votes
were in favour of the report and 1,511,226 were against. No questions or comments were rasied relating to
the report.
No remuneration consultants were used during the year.
Details of Key Management Personnel
(i) Directors:
Adrian Griffin
Patrick McManus
Chew Wai Chu
Natalia Streltsova
(ii) Executives:
James Guy
Robert Van Der Laan
Lindsay Cahill
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
Exploration Manager (appointed 22 September 2016)
Chief Financial Officer
Exploration Manager (resigned 22 September 2016)
Remuneration Philosophy
The performance of the Company depends upon the quality of its directors and executives. To prosper, the
Company must attract, motivate and retain highly skilled directors and executives.
To this end, the Company embodies the following principles in its remuneration framework:
Provide competitive rewards to attract high calibre executives;
Link executive rewards to shareholder value.
23
Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
Shares and options issued under the incentive plans provide an incentive to stay with the Company. At this
time, shares and options issued do not have performance criteria attached. This policy is considered to be
appropriate for the Company, having regard to the current state of its development.
The Company does not have a policy which precludes directors and executives from entering into contracts
to hedge their exposure to options or shares granted to them as remuneration.
The Company also recognises that, at this stage in its development, it is most economical to have only a
few employees and to draw, as appropriate, upon a pool of consultants selected by the directors on the
basis of their known management, geoscientific, and engineering and other professional and technical
expertise and experience. The Company will nevertheless seek to apply the principles described above to
its directors and executives, whether they are employees of/or consultants to the Company.
Remuneration Committee Responsibilities
The Committee assesses the appropriateness of the nature and amount of remuneration of directors and
senior executives on a periodic basis by reference to relevant employment market conditions, with the
overall objective of ensuring maximum stakeholder benefit from the retention of a high quality Board and
executive team.
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-executive and executive
director remuneration is separate and distinct.
Non-executive director remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to
attract and retain directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
The Company’s constitution and the ASX Listing Rules specify that the aggregate remuneration of non-
executive directors must be determined from time to time by shareholders of the Company in a general
meeting. An amount not exceeding the amount determined is then divided between the non-executive
directors. As at the date of the report, the aggregate directors’ fees for non-executive Directors has been
set at an amount not exceeding $200,000 per annum (2016: $200,000 per annum).
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it
is apportioned amongst non-executive directors is reviewed annually. The Board may consider advice from
external consultants (none were used during the current year), as well as the fees paid to non-executive
directors of comparable companies, when undertaking the annual review process. The remuneration report
has been approved by shareholders at the annual general meeting.
Each non-executive director receives a fee for being a director of the Company. No additional fee is paid
for participating in the Audit, Remuneration and Nomination Committees.
Non-executive directors are encouraged by the Board to hold shares in the Company (purchased on market
and in accordance with the Company’s approved policies to ensure there is no insider trading). It is
considered good governance for directors of a company to have a stake in that company. The non-
executive directors of the Company may also participate in the share and option plans as described in this
report.
24
Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
As an incentive to employees, Directors, executive officers and consultants, the Company has adopted a
scheme called the Parkway Minerals Employee Incentive Scheme (‘the Scheme’). The purpose of the
Scheme is to give employees, Directors, executive officers and consultants of the Company an opportunity
to subscribe for shares and/or options in the Company. The Directors consider that the Scheme will enable
the Company to retain and attract skilled and experienced employees, Board members and executive
officers and provide them with the motivation to participate in the future growth of the Company and, upon
becoming shareholders in the Company, to participate in the Company’s profits and development.
Executive director and senior management remuneration
Objective
The Company aims to reward executives with a level and mix of remuneration commensurate with their
position and responsibilities within the Company and so as to:
reward executives for Company, business team and individual performance;
align the interests of executives with those of shareholders; and
ensure total remuneration is competitive by market standards.
Structure
At this time, the cash component of remuneration paid to the Executive directors, and other senior
managers is not dependent upon the satisfaction of performance conditions.
It is current policy that some executives be engaged by way of consultancy agreements with the
Company, under which they receive a contract rate based upon the number of hours of service
supplied to the Company. There is provision for yearly review and adjustment based on consumer
price indices. Such remuneration is hence not dependent upon the achievement of specific
performance conditions. This policy is considered to be appropriate for the Company, having regard to
the current state of its development.
Executive directors are encouraged by the Board to hold shares in the Company (purchased on market
and in accordance with the Company’s approved policies to ensure there is no insider trading). It is
considered good governance for directors of a company to have a stake in that company. The
Executive directors of the Company may also participate in the share and option plans as described in
this report.
Performance table
The following table details the loss of the Company from continuing operations after income tax, together
with the basic loss per share since the incorporation of the company:
2017
$
2016
$
2015
$
2014
$
2013
$
2012
$
Net loss from
continuing operations
after income tax
Basic earnings/(loss)
per share in cents
Share Price in Cents
(1,784,884)
(184,648)
(2,871,003)
(1,822,505)
(4,193,632)
(3,900,096)
(0.43)
1.0
(0.07)
3.2
(1.33)
4.9
(1.72)
3.60
(5.85)
12.0
(5.76)
23.0
The options on issue are not considered dilutive for the purpose of the calculation of diluted earnings/loss
per share as their conversion to ordinary shares would not decrease the net profit from continuing
operations per share. Consequently, diluted earnings/loss per share is the same as basic earnings per
share.
25
Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
Agreements with non-executive directors
The director’s fees of $90,000 per annum inclusive of superannuation requirements were paid, or due and
payable to Mr Adrian Griffin. In the event of termination, there is no notice period required.
The director’s fees of $50,000 per annum inclusive of superannuation requirements were paid, or due and
payable to Mr Chew Wai Chuen. In the event of termination, there is no notice period required.
The director’s fees of $50,000 per annum inclusive of superannuation requirements were paid, or due and
payable to Ms Natalia Streltsova. In the event of termination, there is no notice period required.
Executive director and senior management remuneration
Long-Term Incentive (“LTI”) awards to executives are made under the Employee Share Plan (“ESP”) and
are delivered in the form of shares. There were no LTI awards issued during the current or prior year.
Agreement with Managing Director
On the 6 September 2012, the Remuneration Committee recommended to increase Mr Patrick McManus’s
annual remuneration inclusive of share based payments from $250,000 inclusive of superannuation
requirements to $275,000 per annum inclusive of superannuation requirement, effective from 1 July 2012.
The agreement can be terminated by either party by giving three months’ notice or payment of three
months’ salary in lieu of notice.
Agreement with Chief Financial Officer
Mr Robert Van Der Laan was appointed as Chief Financial Officer, effective on 13 May 2011. On 5 August
2011 the company entered into an agreement containing the terms and conditions under which the services
of Chief Financial Officer are provided. In the event of termination, there is no notice period required.
The agreement involves the payment to the Company associated with Robert Van der Laan of an hourly
fee of $120 and reimbursement of expenses. The hourly rate was revised up to $130 effective from 1 July
2013. Transaction is considered to be on normal commercial terms and conditions no more favourable than
those available to other parties.
Agreement with Exploration Manager – James Guy
On 22 September 2016, the Company and a company associated with Mr James Guy entered into an
agreement containing the terms and conditions under which the services of the Exploration Manager are
provided to the Company. In the event of termination, there is no notice period required.
The agreement involves the payment to a company associated with Mr Guy of monthly fee of $4,000 and
he will sacrifice 30% of additional consulting fees in shares. Transaction is considered to be on normal
commercial terms and conditions no more favourable than those available to other parties.
Agreement with former Exploration Manager – Lindsay Cahill
On 25 August 2011, the Company and a company associated with Mr Lindsay Cahill entered into an
agreement containing the terms and conditions under which the services of the Exploration Manager are
provided to the Company. In the event of termination, there is no notice period required.
The agreement involves the payment to a company associated with Mr Cahill of an hourly fee of $140 and
reimbursement of expenses. Transaction is considered to be on normal commercial terms and conditions
no more favourable than those available to other parties.
Mr Cahill resigned on 22 September 2016.
26
Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
Directors’ Remuneration 2017
Short-term
Post-employment benefits
Directors’
Fees
$
Salary and
Consulting
Fees
$
Superannuation Termination
Share and Option
Based Payments
Contribution
$
Benefits
$
Shares Options
$
$
Total
$
57,534
-
7,808
- 24,658
-
90,000
175,799
23,858
- 75,343
- 275,000
-
35,000
-
- - 15,000
-
50,000
31,963
-
4,338
-
13,699
124,497
175,799
36,004
- 128,700
-
-
50,000
465,000
Executives’ Remuneration 2017
Short-term
Post-employment benefits
Consulting Superannuation Termination
Contribution
$
Benefits
$
Share and Option
Based Payments
Shares Options
$
$
-
-
-
- - 4,751
-
-
Salary
$
Fees
$
4,490
- 50,102
-
Total
$
4,490
54,853
-
119,035
- 173,627
-
-
-
- - 4,751
-
119,035
- 178,378
124,497
349,426
36,004
- 133,451
- 643,378
Director
Adrian Griffin
Patrick
McManus
Chew Wai
Chuen
Natalia
Streltsova
Total
Executive
Lindsay Cahill*
James Guy**
Robert Van der
Laan
Total
Total Directors’
and Executives’
Remuneration
*Resigned 22 September 2016
**Appointed 22 September 2016
27
Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
Directors’ Remuneration 2016
Short-term
Post-employment benefits
Director
Adrian Griffin
Patrick
McManus
Chew Wai
Chuen
Natalia
Streltsova
Total
Directors’
Fees
$
Salary and
Consulting
Fees
$
Superannuation Termination
Share and Option
Based Payments
Contribution
$
Benefits
$
Shares Options
$
$
Total
$
57,535
-
7,808
- 24,657
-
90,000
164,799
34,858
- 75,343
- 275,000
-
35,000
-
- - 15,000
-
50,000
31,963
-
4,338
-
13,699
124,498
164,799
47,004
- 128,699
-
-
50,000
465,000
Executives’ Remuneration 2016
Short-term
Post-employment benefits
Executive
Salary
$
Fees
$
Consulting Superannuation Termination
Contribution
$
- -
Benefits
$
- 37,667
Share and Option
Based Payments
Shares Options
$
$
-
118,950
- 156,617
-
-
- -
Total
$
37,667
-
- 118,950
- 156,617
-
-
-
124,498
321,416
47,004
- 128,699
- 621,617
Lindsay Cahill
Robert Van der
Laan
Total
Total Directors’
and Executives’
Remuneration
Incentive shares and options: Granted and vested during the year
Shares
There were no shares issued to key management personnel as part of the incentive plan during the year
ended 30 June 2017 (2016: nil). The shares issued to key management personnel as disclosed in the table
above were in lieu of Directors’ fees.
Options
There were no options granted to key management personnel as part of the incentive plan during the year
ended 30 June 2017 (2016: nil).
28
Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key management personnel, which including the
directors and executives.
(a)
Share holdings of Key Management Personnel
2017
Directors
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Total
Executives
Lindsay Cahill*
James Guy**
Robert Van der Laan
Total
Total Directors' and Executives’ Share holdings
*Resigned 22 September 2016
**Appointed 22 September 2016
Balance at 1 July
2016
Ordinary
Granted as
remuneration
Ordinary
On Exercise of
Options
Ordinary
Net change other
Ordinary
Balance at 30 June
2017
Ordinary
1,505,367
4,599,726
915,764
836,313
7,857,170
-
-
-
- -
-
7,857,170
-
-
-
-
-
-
-
-
1,000,000
200,001
26,111
-
1,226,112
(107,025)
275,179
918,000
1,086,154
2,312,266
9,315,634
10,860,829
1,972,335
1,168,805
23,317,603
3,568,057
275,179
8,536,751
12,379,987
35,697,590
6,810,267
6,061,102
1,030,460
332,492
14,234,321
3,675,082
-
7,618,751
11,293,833
25,528,154
29
Remuneration Report (audited) (continued)
Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
2016
Directors
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Total
Executives
Lindsay Cahill
Robert Van der Laan
Total
Total Directors' and Executives’ Share holdings
Balance at 1 July
2015
Ordinary
Granted as
remuneration
Ordinary
On Exercise of
Options
Ordinary
Net change other
Ordinary
Balance at 30 June
2016
Ordinary
6,095,933
3,878,407
595,904
-
10,570,244
714,334
2,182,695
434,556
332,492
3,664,077
-
-
-
-
-
-
-
-
-
-
6,810,267
6,061,102
1,030,460
332,492
14,234,321
3,715,082
7,476,857
11,191,939
21,762,183
-
-
-
-
3,664,077
-
-
(40,000)
141,894
101,894
101,894
3,675,082
7,618,751
11,293,833
25,528,154
(b) Partly Paid Contributing Shares of Key Management Personnel
2017
Directors
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Total
Executives
Lindsay Cahill (resigned 22 September 2016)
James Guy (appointed 22 September 2016)
Robert Van der Laan
Total
Balance at 1 July
2016
Partly Paid
Granted as
remuneration
Partly Paid
On Exercise of Options Bonus issue received
Partly Paid
Partly Paid
Balance at 30 June
2017
Partly Paid
2,895,317
1,567,323
-
-
4,462,640
1,877,542
-
2,290,010
4,167,552
-
-
-
-
-
-
-
-
-
-
-
-
2,054,900
1,877,950
326,395
139,973
4,399,218
771,002
-
-
-
-
-
-
-
888,600
1,659,602
4,950,217
3,445,273
326,395
139,973
8,861,858
2,648,544
-
3,178,610
5,827,154
Total Directors' and Executives’ Share holdings
8,630,192
-
-
6,058,820
14,689.012
30
Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
2016
Directors
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Total
Executives
Lindsay Cahill
Robert Van der Laan
Total
Balance at 1 July
2015
Partly Paid
Granted as
remuneration
Partly Paid
On Exercise of Options
Net change other
Partly Paid
Partly Paid
Balance at 30 June
2016
Partly Paid
2,895,317
1,567,323
-
-
4,462,640
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,895,317
1,567,323
-
-
4,462,640
1,877,542
3,520,929
5,398,471
-
-
-
-
-
- (1,230,919)
- (1,230,919)
1,877,542
2,290,010
4,167,552
Total Directors' and Executives’ Share holdings
9,861,111
-
- (1,230,919)
8,630,192
(c) Option holdings of Key Management Personnel
2017: There were no Options granted to Key management personnel as part of the incentive plan during the year ended 30 June 2017.
2016
Directors
Adrian Griffin
Patrick McManus
Chew Wai Chuen
Natalia Streltsova
Total
Executives
Lindsay Cahill
Robert Van der Laan
Total
Total Directors' and Executives’ Share holdings
Balance at 1
July 2015
Number
Granted as
remuneration
Number
Options
exercised
Number
Options
expired
Number
Balance at 30
June 2016
Number
Not
exercisable
Number
Exercisable
Number
200,000
750,000
-
-
950,000
-
-
-
-
-
-
250,000
250,000
1,200,000
-
-
-
-
31
-
-
-
-
-
-
-
-
-
(200,000)
(750,000)
-
-
(950,000)
-
(250,000)
(250,000)
(1,200,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Parkway Minerals NL
A.C.N. 147 346 334
Directors’ Report (continued)
Remuneration Report (audited) (continued)
(d) Other Transactions with Key Management Personnel
Other transactions with key management personnel are set out below:
Corporate advisory were paid to Precious Capital Pte Ltd, a company
of which Chew Wai Chuen is a director and shareholder
Fees were paid to Horn Resources Pty Ltd, a company of which
Robert Van der Laan is a director and shareholder.
Fees included investor relations, corporate advisory, office
accommodation, accounting staff (excluding fees directly related to
Robert Van der Laan), administrative staffs and exploration staffs.
Service fees paid are considered to be on normal commercial terms
and condition.
30-Jun-17
$
30-Jun-16
$
9,454
9,708
148,526
157,980
213,100
222,808
End of Remuneration Report.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act
2001 is set out on page 33 and forms part of this report.
This report is made in accordance with a resolution of directors.
Patrick McManus
Managing Director
Perth
Dated: 29 September 2017
32
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Auditor’s Independence Declaration to the Directors of Parkway Minerals
NL
As lead auditor for the audit of Parkway Minerals NL for the financial year ended 30 June 2017, I declare
to the best of my knowledge and belief, there have been:
a. no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
b. no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Parkway Minerals NL and the entities it controlled during the financial
year.
Ernst & Young
V L Hoang
Partner
29 September 2017
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
MH:NL:PARKWAY:018
33
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement
The Company is committed to implementing the highest standards of corporate governance. In
determining what those high standards should involve the Company has considered the ASX Corporate
Governance Council’s Principles of Good Corporate Governance and Recommendations.
In line with the above, the Board has set out the way forward for the Company in its implementation of its
Principles of Good Corporate Governance and Recommendations. The approach taken by the board was
to set a blueprint for the Company to follow as it introduces elements of the governance process. Due to
the current size of the Company and the scale of its operations it is neither practical nor economic for the
adoption of all of the recommendations approved via the board charter. Where the Company has not
adhered to the recommendations it has stated that fact in this Corporate Governance Statement however
has set out a mandate for future compliance when the size of the Company and the scale of its operations
warrants the introduction of those recommendations. Date of last review and Board approval: 27
September 2017.
Principle / Recommendation
Principle 1:
Lay solid foundations for
management and oversight
Recommendation 1.1
A listed entity should disclose:
a)
the respective roles and
responsibilities of its board
and management; and
those matters expressly
reserved to the board and those
delegated to management.
Compliance Reference
Commentary
Yes
Board
Charter
Code of
Conduct,
Independent
Professional
Advice
Policy –
refer to
Website
To add value to the Company the Board
has been formed so that it has effective
composition, size and commitment to
adequately discharge its responsibilities
and duties. Directors are appointed
based on the specific skills required by
the Company and on their decision-
making and judgment. The Board’s role
is to govern the Company rather than to
manage it. In governing the Company,
the Directors must act in the best
interests of the Company as a whole. It
is the role of senior management to
manage the Company in accordance
with the direction and delegations of the
Board and the responsibility of the
Board to oversee the activities of
management in carrying out those
delegated duties.
In carrying out its governance role, the
main task of the Board is to drive the
performance of the Company. The
Board must also ensure that the
Company complies with all of its
contractual, statutory and any other
legal obligations, including the
requirements of any regulatory body.
The Board has the final responsibility for
the successful operations of the
Company. To assist the Board carry its
functions, it has developed a Code of
Conduct to guide the Directors.
34
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
In general, the Board is responsible for,
and has the authority to determine, all
matters relating to the policies,
practices, management and operations
of the Company. It is required to do all
things that may be necessary to be done
in order to carry out the objectives of the
Company.
Without intending to limit this general
role of the Board, the principal functions
and responsibilities of the Board include
the following.
• Leadership of the Organisation:
overseeing the Company and
establishing codes that reflect
the values of the Company and
guide the conduct of the Board.
• Strategy Formulation: to set
and review the overall strategy
and goals for the Company and
ensuring that there are policies
in place to govern the operation
of the Company.
• Overseeing Planning Activities:
the development of the
Company’s strategic plan.
• Shareholder Liaison: ensuring
effective communications with
shareholders through an
appropriate communications
policy and promoting
participation at general
meetings of the Company as
well as ensuring timely and
balanced disclosures of all
material information concerning
the Company that a reasonable
person would expect to have a
material effect on the price or
value of the entity’s securities.
• Monitoring, Compliance and
Risk Management: the
development of the Company’s
risk management, compliance,
control and accountability
systems and monitoring and
directing the financial and
operational performance of the
Company.
• Company Finances: approving
expenses and approving and
monitoring acquisitions,
divestitures and financial and
other reporting along with
ensuring the integrity of the
35
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
• Company’s financial and other
reporting.
• Human Resources: reviewing
the performance of Executive
Officers and monitoring the
performance of senior
management in their
implementation of the
Company’s strategy.
• Ensuring the health, safety and
well-being of employees: in
conjunction with the senior
management team, developing,
overseeing and reviewing the
effectiveness of the Company’s
occupational health and safety
systems to ensure the well-
being of all employees.
• Delegation of Authority:
delegating appropriate powers
to the Managing Director to
ensure the effective day-to-day
management of the Company
and establishing and
determining the powers and
functions of the Committees of
the Board.
• Monitoring the effectiveness of
the Company’s corporate
governance practices.
Full details of the Board’s and Company
Secretary’s roles and responsibilities are
contained in the Board Charter. The
Board collectively and each Director has
the right to seek independent
professional advice at the Company’s
expense, up to specified limits, (that limit
is currently set at $2,000), to assist them
to carry out their responsibilities.
36
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Director
Selection
Procedure –
refer to
Website
Recommendation 1.2
A listed entity should:
a) undertake appropriate
checks before appointing a
person, or putting forward
to security holders a
candidate for election, as a
director; and
provide security holders with all
material information in its
possession relevant to a decision
on whether or not to elect or re-
elect a director.
Yes,
however the
full
information
of new
Directors for
election
was not
included in
all notices
of meeting
but will be
included in
future
notices of
meeting
Yes
Recommendation 1.3
A listed entity should have a
written agreement with each
director and senior executive
setting out the terms of their
appointment.
Kept at
registered
office,
Independent
Professional
Advice
Policy
Directors are appointed based on the
specific governance skills required by
the Company. Given the size of the
Company and the business that it
operates, the Company aims at all times
to have at least one Director with
experience appropriate to the
Company’s operations. The Company’s
current Directors all have relevant
experience in the operations. In
addition, Directors should have the
relevant blend of personal experience
in:
• Accounting and financial
management; and
• Director-level business
experience.
Each member of the Board is committed
to spending sufficient time to enable
them to carry out their duties as a
Director of the Company.
The Board collectively and each Director
has the right to seek independent
professional advice at the Company’s
expense, up to specified limits, (that limit
is currently set at $2,000), to assist them
to carry out their responsibilities.
37
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Recommendation 1.4
Yes
Board
Charter
Website
Full details of the Board’s and
Company Secretary’s roles and
responsibilities are contained in the
Board Charter.
The company secretary of a listed
entity should be accountable
directly to the board, through the
chair, on all matters to do with the
proper functioning of the board.
Recommendation 1.5
A listed entity should:
a) have a diversity policy which
includes requirements for
the board or a relevant
committee of the board to
set measurable objectives
for achieving gender
diversity and to assess
annually both the objectives
and the entity’s progress in
achieving them;
b) disclose that policy or a
summary of it; and
c) disclose as at the end of
each reporting period the
measurable objectives for
achieving gender diversity
set by the board or a
relevant committee of the
board in accordance with
the entity’s diversity policy
and its progress towards
achieving them, and either:
1)
the respective
proportions of men
and women on the
board, in senior
executive positions and
across the whole
organisation (including
how the entity has
defined “senior
executive” for these
purposes); or
if the entity is a “relevant
employer” under the Workplace
Gender Equality Act, the entity’s
most recent “Gender Equality
Indicators”, as defined in and
published under that Act.
The Company recognises and
respects the value of diversity at all
levels of the organisation. The
Company is committed to setting
measurable objectives for attracting
and engaging women at the Board
level, in senior management and
across the whole organisation.
The Diversity Policy was re-adopted
during the year and the Company set
the following objectives for the
employment of women:
•
•
•
to the Board – 25% by 2018
to senior management – no
target set
to the organisation as a whole
– 20% by 2018
As at the date of this report, the
Company has the following proportion
of women appointed:
•
•
•
to the Board – 25%
to senior management
(including Company
Secretary) – 20%
to the organisation as a whole
– 20%
The Company recognises that the
mining and exploration industry is
intrinsically male dominated in many of
the operational sectors and the pool of
women with appropriate skills will be
limited in some instances. The
Company recognises that diversity
extends to matters of age, disability,
ethnicity, marital/family status,
religious/cultural background and
sexual orientation. Where possible,
the Company will seek to identify
suitable candidates for positions from
a diverse pool. The presence of Chew
Wai Chuen on the Board provides a
different cultural view to the operations
of the Company.
Yes
Diversity
Policy
Website
38
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Yes
Yes
Yes
Recommendation 1.6:
A listed entity should:
a) have and disclose a process
for periodically evaluating the
performance of the board,
its committees and individual
directors; and
disclose, in relation to each
reporting period, whether a
performance evaluation was
undertaken in the reporting
period in accordance with that
process.
Recommendation 1.7:
A listed entity should:
a) have and disclose a process
for periodically evaluating the
performance of its senior
executives; and
disclose, in relation to each
reporting period, whether a
performance evaluation was
undertaken in the reporting
period in accordance with that
process.
Principle 2: Structure the board
to add value
Recommendation 2.1
The board of a listed entity
should:
a) have a nomination
committee which:
1) has at least three
3)
4)
2)
members, a majority of
whom are independent
directors; and
is chaired by an
independent director, and
disclose:
the charter of the
committee;
the members of the
committee; and
5) as at the end of each
reporting period, the
number of times the
committee met
throughout the period
and the individual
attendances of the
members at those
meetings; or
Board ,
Committee
& Individuals
Performance
Evaluation
Procedure –
refer to
Website
It is the policy of the Board to conduct
evaluation of its performance. The
objective of this evaluation is to provide
best practice corporate governance to
the Company. During the financial year
an evaluation of the performance of the
Board and its members was formally
carried out. From this evaluation, a few
areas for improvement were noted but
the important conclusion drawn was
that there was no overlapping skillset in
the Board.
Board ,
Committee
& Individuals
Performance
Evaluation
Procedure –
refer to
Website
It is the policy of the Board to conduct
evaluation of individuals’ performance.
The objective of this evaluation is to
provide best practice corporate
governance to the Company. During
the financial year an evaluation of the
performance of the individuals was
formally carried out. From this
evaluation, a few areas for improvement
were noted.
Nomination
Committee
Charter,
Independent
Professional
Advice
Policy –
refer to
Website
The role of the Nomination Committee
is to help achieve a structured Board
that adds value to the Company by
ensuring an appropriate mix of skills are
present in Directors on the Board at all
times. The Nomination Committee
consists of three Non-Executive
directors, being Natalia Streltsova,
Adrian Griffin and Chew Wai Chuen and
the Company Secretary. The Chair of
the Nomination Committee is Natalia
Streltsova, an independent director.
The Nomination Committee met once
during the year and all members at the
time were present.
The responsibilities of the Nomination
Committee include devising criteria for
Board membership, regularly reviewing
the need for various skills and
experience on the Board and identifying
specific individuals for nomination as
Directors for review by the Board. The
Nomination Committee also oversees
management succession plans
39
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
b)
if it does not have a
nomination committee, disclose
that fact and the processes it
employs to address board
succession issues and to ensure
that the board has the appropriate
balance of skills, knowledge,
experience, independence and
diversity to enable it to discharge
its duties and responsibilities
effectively.
Recommendation 2.2
A listed entity should have and
disclose a board skills matrix
setting out the mix of skills and
diversity that the board currently
has or is looking to achieve in its
membership.
Yes
Internal
management
document
Yes
Board
Charter,
Independence
of Directors
Assessment –
refer to
Website
Recommendation 2.3
A listed entity should disclose:
a)
the names of the directors
considered by the board to
be independent directors;
if a director has an interest,
position, association or
relationship of the type
described in Box 2.3 but
the board is of the opinion
that it does not compromise
the independence of the
director, the nature of the
interest, position,
association or relationship
in question and an
explanation of why the board
is of that opinion; and
the length of service of each
director.
b)
c)
including the Managing Director and
his/her direct reports and evaluate the
Board’s performance and make
recommendations for the appointment
and removal of Directors. Matters such
as remuneration, expectations, terms,
the procedures for dealing with
conflicts of interest and the availability
of independent professional advice are
clearly understood by all Directors, who
are experienced public company
Directors. The Board collectively and
each Director has the right to seek
independent professional advice at the
Company’s expense, up to specified
limits, (that limit is currently set at
$2,000), to assist them to carry out
their responsibilities.
The Company has reviewed the skill
set of its Board to determine where the
skills lie and any relevant gaps in skills
shortages. The Company is working
towards filling these gaps through
professional development initiatives as
well as seeking to identify suitable
Board candidates for positions from a
diverse pool.
The Company recognises the
importance of Non-Executive Directors
and the external perspective and
advice that Non-Executive Directors
can offer. An Independent Director:
is a Non-Executive Director
and;
is not a substantial shareholder
of the Company or an officer
of, or otherwise associated
directly with, a substantial
shareholder of the Company;
3. within the last three years has
not been employed in an
executive capacity by the
Company or another group
member, or been a Director
after ceasing to hold any such
employment;
1.
2.
4. within the last three years has
not been a principal of a
material professional adviser or
a material consultant to the
Company or another group
member, or an employee
materially associated with the
service provided;
40
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
5.
is not a material supplier or
customer of the Company or
another group member, or an
officer of or otherwise
associated directly or indirectly
with a material supplier or
customer;
6. has no material contractual
relationship with the Company
or other group member other
than as a Director of the
Company;
7. has not served on the Board
8.
for a period which could, or
could reasonably be perceived
to, materially interfere with the
Director’s ability to act in the
best interests of the Company;
and
is free from any interest and
any business or other
relationship which could, or
could reasonably be perceived
to, materially interfere with the
Director’s ability to act in the
best interests of the Company.
Materiality for the purposes of points 1
to 8 above is determined on the basis
of both quantitative and qualitative
aspects with regard to the
independence of Directors. An amount
over 5% of the Company’s expenditure
or 10% of the particular directors
annual gross income is considered to
be material. A period of more than six
years as a Director would be
considered material when assessing
independence.
Adrian Griffin (appointed 12 November
2010) is a Non-Executive Director and
Chairman of the Company and meets
the Company’s criteria for
independence. Although Adrian Griffin
has entered into a profit á prendre re
mineral interest rights with the
Company, he is still considered to be
independent as the agreement is not
considered to be material as the
proportion vended in is insignificant to
both parties. His experience and
knowledge of the Company makes his
contribution to the Board such that it is
appropriate for him to remain on the
Board and in his position as Chairman.
41
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Chew Wai Chuen (appointed 26
November 2014) is a Non-Executive
Director of the Company and meets
the Company’s criteria for
independence. His experience and
knowledge of the Company makes his
contribution to the Board such that it is
appropriate for him to remain on the
Board and in his position as a Non-
Executive Director.
Natalia Streltsova (appointed 30 June
2015) is a Non-Executive Director of
the Company and meets the
Company’s criteria for independence.
Her experience and knowledge of the
Company makes her contribution to
the Board such that it is appropriate for
her to remain on the Board and in her
position as a Non-Executive Director.
Patrick McManus (appointed 23
November 2010) is an Executive
Director of the Company and does not
meet the Company’s criteria for
independence. However, his
experience and knowledge of the
Company makes his contribution to the
Board such that it is appropriate for
him to remain on the Board.
The Board has a majority of Directors
who are independent.
The Chairperson is an independent
Director who is not the CEO /
Managing Director.
It is the policy of the Company that
each new Director undergoes an
induction process in which they are
given a full briefing on the Company.
Where possible this includes meetings
with key executives, tours of the
premises, an induction package and
presentations. Information conveyed
to new Directors include:
• details of the roles and
•
responsibilities of a Director;
formal policies on Director
appointment as well as
conduct and contribution
expectations;
Yes
Yes
Yes
Recommendation 2.4
A majority of the board of a listed
entity should be independent
directors.
Recommendation 2.5
The chair of the board of a listed
entity should be an independent
director and, in particular, should
not be the same person as the
CEO of the entity.
Recommendation 2.6
A listed entity should have a
program for inducting new
directors and provide appropriate
professional development
opportunities for directors to
develop and maintain the skills and
knowledge needed to perform their
role as directors effectively.
Independence
of Directors
Assessment
Website
Independence
of Directors
Assessment
Website
Director
Induction
Program,
Ongoing
Education
Framework
Website
42
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
• a copy of the Corporate
Governance Statement,
Charters, Policies and Memos
and
• a copy of the Constitution of
the Company.
In order to achieve continuing
improvement in Board performance, all
Directors are encouraged to undergo
continual professional development.
The Board has implemented an
Ongoing Education Framework.
As part of its commitment to
recognising the legitimate interests of
stakeholders, the Company has
established a Code of Conduct to
guide compliance with legal and other
obligations to legitimate stakeholders.
These stakeholders include
employees, clients, customers,
government authorities, creditors and
the community as whole.
The Audit and Risk Committee
consists of Barry Woodhouse (Chair of
the Audit and Risk Committee), Adrian
Griffin, Natalia Streltsova and Chew
Wai Chuen who are independent Non-
Executive Directors with experience
relevant to being a member of the
Audit and Risk Committee. Natalia
Streltsova is a graduate of AICD. She
has had experience with audit and
financial compliance as part of her
responsibilities with various
companies. Adrian Griffin’s financial
experience is limited to practical
application as a director of a number of
private and public companies over a
period of 30 years. Chew Wai Chuen
is a Qualified Chartered Financial
Planner, holding BBA and MBA
qualifications. He has had experience
with financial compliance as part of his
engagement with various companies.
The Audit and Risk Committee met
twice during the year and all members
at the time were present.
Principle 3: Act ethically and
responsibly
Recommendation 3.1
A listed entity should:
a) have a code of conduct for
its directors, senior
executives and employees;
and
b) disclose that code or a
summary of it.
Yes
Code of
Conduct
Website
Principle 4: Safeguard
integrity in corporate
reporting
Recommendation 4.1
The board of a listed entity
should: (a) have an audit
committee which:
a) has at least three members,
Yes
Audit and Risk
Committee
Charter
Website
all of whom are non-
executive directors and a
majority of whom are
independent directors; and
1)
is chaired by an
independent director,
who is not the chair of
the board,and disclose:
2) the charter of the
3)
committee;
the relevant qualifications
and
5)
4) experience of the
members of the
committee; and
in relation to each
reporting period, the
number of times the
committee met
throughout the period
and the individual
attendances of the
members at those
meetings; or
43
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
b) if it does not have an audit
committee, disclose that fact
and the processes it employs that
independently verify and
safeguard the integrity of its
corporate reporting, including
the processes for the
appointment and removal of the
external auditor and the rotation
of the audit engagement partner.
Recommendation 4.2
The board of a listed entity
should, before it approves the
entity’s financial statements for a
financial period, receive from its
C E O and CFO a declaration that,
in their opinion, the financial
records of the entity have been
properly maintained and that the
financial statements comply with
the appropriate accounting
standards and give a true and fair
view of the financial position and
performance of the entity and that
the opinion has been formed on
the basis of a sound system of risk
management and internal control
which is operating effectively.
Recommendation 4.3
A listed entity that has an AGM
should ensure that its external
auditor attends its AGM and is
available to answer questions
from security holders relevant to
the audit.
Principle 5: Make timely and
balanced disclosure
Recommendation 5.1
A listed entity should:
a) have a written policy for
complying with its continuous
disclosure obligations under
the Listing Rules; and
disclose that policy or a summary
of it.
Yes
Kept at
registered
office
The Managing Director and the Chief
Financial Officer provide a declaration
to the Board in accordance with
section 295A of the Corporations Act
for each financial report and assure the
Board that such declaration is founded
on a sound system of risk
management and internal control and
that the system is operating effectively
in all material respects in relation to
financial reporting risks.
Yes
AGM
The external auditor is invited to attend
every AGM for the purpose of
answering questions from security
holders relevant to the audit.
Yes
Continuous
Disclosure
Policy
Website
The Board has designated the
Company Secretary as the person
responsible for overseeing and
coordinating disclosure of information
to the ASX as well as communicating
with the ASX. In accordance with the
ASX Listing Rules the Company
immediately notifies the ASX of
information:
1.
concerning the Company that a
reasonable person would expect
to have a material effect on the
price or value of the Company’s
securities; and
that would, or would be likely to,
influence persons who commonly
invest in securities in deciding
whether to acquire or dispose of
the Company’s securities.
2.
44
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Principle 6: Respect the rights
of security holders
Recommendation 6.1
A listed entity should provide
information about itself and its
governance to investors via its
website.
Yes Website
Disclosure
Policy
Website
Recommendation 6.2
A listed entity should design and
implement an investor relations
program to facilitate effective two-
way communication with
investors.
Yes
Shareholder
Communication
Policy, Social
Media Policy
Website
45
The Company’s website includes the
following:
• Corporate Governance policies,
procedures, charters, programs,
assessments, codes and
frameworks
• Names and biographical details of
each of its directors and senior
executives
• Constitution
• Copies of annual, half yearly and
quarterly reports
• ASX announcements
• Copies of notices of meetings of
security holders
• Media releases
• Overview of the Company’s
current business, structure and
history
• Details of upcoming meetings of
security holders
• Summary of the terms of the
securities on issue
• Historical market price information
of the securities on issue
• Contact details for the share
registry and media enquiries
• Share registry key security holder
forms
The Company respects the rights of its
shareholders and to facilitate the effective
exercise of those rights the Company is
committed to:
•
communicating effectively with
shareholders through releases to
the market via ASX, information
mailed to shareholders and the
general meetings of the
Company;
• giving shareholders ready access
•
to balanced and understandable
information about the Company
and corporate proposals;
requesting the external auditor to
attend the annual general
meeting and be available to
answer shareholder questions
about the conduct of the audit and
the preparation and content of the
auditor’s report of future Annual
Reports.
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
The Company also makes available a
telephone number and email address for
shareholders to make enquiries of the
Company.
The Company respects the rights of its
shareholders and to facilitate the
effective exercise of those rights the
Company is committed to making it easy
for shareholders to participate in
shareholder meetings of the Company.
The Company also makes available a
telephone number and email address for
shareholders to make enquiries of the
Company.
Shareholders are regularly given the
opportunity to receive communications
electronically.
The Board has not established a
separate Risk Committee, rather, risk is
addressed through the combined Audit
and Risk Committee, and therefore it is
not structured in accordance with
Recommendation 7.1. Given the current
size and composition of the Board, the
Board believes that there would be no
efficiencies gained by establishing a
separate Risk Committee. Items that
are usually required to be discussed by
a Risk Committee are discussed at a
separate meeting when required. When
the Board convenes as the Audit and
Risk Committee it carries out those
functions which are delegated to it in the
Company’s Risk Committee Charter.
The Board deals with any conflicts of
interest that may occur when convening
in the capacity of the Risk Committee by
ensuring that the Director with conflicting
interests is not party to the relevant
discussions.
The Audit and Risk Committee met
twice during the year. Risk identification
and risk management discussions
occurred at several Board meetings
throughout the year. To assist the
Board to fulfil its function as the Risk
Committee, the Company has adopted a
Risk Management Policy.
Recommendation 6.3
A listed entity should disclose the
policies and processes it has in
place to facilitate and encourage
participation at meetings of
security holders.
Yes
Shareholder
Communication
Policy
Website
Recommendation 6.4
A listed entity should give security
holders the option to receive
communications from and send
communications to, the entity
and its security registry
electronically.
Principle 7: Recognise and
manage risk
Recommendation 7.1
The board of a listed entity
should:
a) have a committee or
committees to oversee risk,
each of which:
1) has at least three
Yes
Shareholder
Communication
Policy
Website
No
Risk
Management
Policy
Website
3)
4)
2)
members, a majority of
whom are independent
directors; and
is chaired by an
independent director, and
disclose:
the charter of the
committee;
the members of the
committee; and
5) as at the end of each
reporting period, the
number of times the
committee met
throughout the period
and the individual
attendances of the
members at those
meetings; or
b)
if it does not have a risk
committee or committees
that satisfy (a) above,
disclose that fact and the
processes it employs for
overseeing the entity’s risk
management framework.
46
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Yes
Risk
Management
Policy – refer to
website
Recommendation 7.2
The board or a committee of the
board should:
a) review the entity’s risk
management framework
at least annually to satisfy
itself that it continues to
be sound; and
a) disclose, in relation to each
reporting period, whether
such a review has taken
place.
The Company’s Risk Management Policy
states that the Board as a whole is
responsible for the oversight of the
Company’s risk management and control
framework. The objectives of the
Company’s Risk Management Strategy
are to:
identify risks to the Company;
•
• balance risk to reward;
• ensure regulatory compliance is
achieved; and
• ensure senior executives, the
Board and investors understand
the risk profile of the Company.
The Board monitors risk through various
arrangements including:
•
regular Board meetings;
•
share price monitoring;
• market monitoring; and
•
regular review of financial position
and operations.
The Company has developed a Risk
Register in order to assist with the risk
management of the Company. The
Company’s Risk Management Policy is
considered a sound strategy for
addressing and managing risk. During
the year, management regularly reported
to the Board on the following categories of
risks affecting the Company as part of the
Company’s systems and processes for
managing material business risks:
operational, financial reporting,
sovereignty and market-related risks. The
Board is responsible for the oversight of
the Company’s risk management and
control framework. Responsibility for
control and risk management is delegated
to the appropriate level of management
within the Company with the Managing
Director and Chief Financial Officer (or
equivalent) having ultimate responsibility
to the Board for the risk management and
control framework. Arrangements put in
place by the Board to monitor risk
management include:
•
regular reporting to the Board in
respect of operations and the
financial position of the Company;
47
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
• where appropriate the
appointment of appropriately
skilled consultants to provide
independent assessment of
operational results, proposals
and activities; and
Use of a risk register to assist with risk
management.
When the Audit and Risk Committee
convenes it carries out those functions
which are delegated to it in the
Company’s Audit and Risk Committee
Charter which include overseeing the
establishment and implementation by
management of a system for identifying,
assessing, monitoring and managing
material risk throughout the Company,
which includes the Company’s internal
compliance and control systems. Due to
the nature and size of the Company's
operations, and the Company’s ability to
derive substantially all of the benefits of
an independent internal audit function,
the expense of an independent internal
auditor is not considered to be
appropriate.
The Company has considered its
economic, environmental and social
sustainability risks by way of internal
review and has concluded that it is
subject to material economic,
environmental and social sustainability
risks, and that is recognised and
managed by the risk management
register.
No
Audit and Risk
Committee
Charter
Website
Recommendation 7.3
A listed entity should disclose:
a)
if it has an internal audit
function, how the function is
structured and what role it
performs; or
if it does not have an internal
audit function, that fact and
the processes it employs for
evaluating and continually
improving the effectiveness
of its risk management and
internal control processes.
b)
Recommendation 7.4
A listed entity should disclose
whether it has any material
exposure to economic,
environmental and social
sustainability risks and, if it does,
how it manages or intends to
manage those risks.
Yes
Corporate
Governance
Statement
48
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Yes
Remuneration
Committee
Charter,
Independent
Professional
Advice Policy
Website
Principle 8: Remunerate fairly
and responsibly
Recommendation 8.1
The board of a listed entity
should:
a) have a remuneration
committee which:
1) has at least three
4)
3)
2)
members, a majority of
whom are independent
directors; and
is chaired by an
independent director,
and disclose:
the charter of the
committee;
the members of the
committee; and
5) as at the end of each
reporting period, the
number of times the
committee met
throughout the period
and the individual
attendances of the
members at those
meetings; or
if it does not have a
remuneration committee,
disclose that fact and the
processes it employs for
setting the level and
composition of remuneration
for directors and senior
executives and ensuring that
such remuneration is
appropriate and not
excessive.
b)
Recommendation 8.2
A listed entity should separately
disclose its policies and practices
regarding the remuneration of
non-executive directors and the
remuneration of executive
directors and other senior
executives.
Yes
Remuneration
Policy
Website
49
The role of the Remuneration Committee
is to assist the Board in fulfilling its
responsibilities in respect of establishing
appropriate remuneration levels and
incentive policies for employees. The
Remuneration Committee consists of
three Non-Executive Directors, being
Natalia Streltsova, Adrian Griffin and
Chew Wai Chuen and the Company
Secretary. The Chair of the
Remuneration Committee is Adrian
Griffin, an independent director. The
Remuneration Committee met once
during the financial year ended and all
members at the time were present. The
responsibilities of the Remuneration
Committee include setting policies for
senior officers’ remuneration, setting the
terms and conditions of employment for
the Managing Director, reviewing and
making recommendations to the Board
on the Company’s incentive schemes
and superannuation arrangements,
reviewing the remuneration of both
Executive and Non-Executive Directors,
recommendations for remuneration by
gender and making recommendations
on any proposed changes and
undertaking reviews of the Managing
Director’s performance, including, setting
with the Managing Director goals and
reviewing progress in achieving those
goals.
The Board collectively and each Director
has the right to seek independent
professional advice at the Company’s
expense, up to specified limits, (that limit
is currently set at $2,000), to assist them
to carry out their responsibilities.
Non-Executive Directors are to be paid
their fees out of the maximum aggregate
amount approved by shareholders for
the remuneration of Non-Executive
Directors. Managing Director
remuneration is set by the Board with
the executive director in question not
present. Full details regarding the
remuneration of Directors has been
included in the Remuneration Report
within the Annual Report.
Parkway Minerals NL
A.C.N. 147 346 334
Corporate Governance Statement (continued)
Executives and Non-Executive Directors
are prohibited from entering into
transactions or arrangements which limit
the economic risk of participating in
unvested entitlements.
Recommendation 8.3
A listed entity which has an
equity-based remuneration
scheme should:
Yes
Remuneration
Policy
Website
a) have a policy on whether
participants are permitted
to enter into transactions
(whether through the use
of derivatives or
otherwise) which limit the
economic risk of
participating in the
scheme; and
b) disclose that policy or a
summary of it.
50
Parkway Minerals NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2017
For the year ended
30 June 2017
For the year ended
30 June 2016
Note
$
$
INCOME
Other income
Gain on deconsolidation of subsidiary
Gain on disposal of financial assets
Option and exclusivity fee received
Interest
Government Grant
TOTAL INCOME
EXPENSES
Impairment of financial assets
Impairment of investment in associate
Loss on sale of financial assets
Administration
Depreciation
Share-based payments
Exploration
Legal
Occupancy
Remuneration (excluding equity based payments)
Share of net losses of associate
LOSS BEFORE INCOME TAX
INCOME TAX EXPENSE
12
13
25
13
12
13
14
19
12
4
6,197
3,780,837
-
151,367
15,077
284,722
4,238,200
1,064,921
1,453,305
333,017
529,652
14,931
209,200
597,602
71,451
65,299
537,399
760,436
(1,399,013)
-
-
2,834,320
98,649
14,762
179,094
3,126,825
969,773
-
-
574,181
12,241
151,858
990,853
51,096
60,000
501,471
-
(184,648)
(385,871)
-
NET LOSS FOR THE YEAR
(1,784,884)
(184,648)
OTHER COMPREHENSIVE INCOME
Items that may be subsequently reclassified to profit or loss:
Available for sale financial assets
- Current year losses
- Reclassified to profit or loss
TOTAL COMPREHENSIVE LOSS FOR THE
YEAR
PROFIT/(LOSS) FOR THE YEAR
ATTRIBUTABLE TO:
Members of the controlling entity
Non controlling interest
TOTAL COMPREHENSIVE LOSS
ATTRIBUTABLE TO:
Members of the controlling entity
Non controlling interest
(1,064,921)
1,064,921
(969,773)
969,773
(1,784,884)
(184,648)
(1,832,994)
48,110
(1,784,884)
(1,832,994)
48,110
(1,784,884)
(181,904)
(2,744)
(184,648)
(181,904)
(2,744)
(184,648)
Basic and diluted loss per share (cents per share)
7
(0.43)
(0.07)
The consolidated statement of comprehensive income should be read in conjunction with the
accompanying notes.
51
Parkway Minerals NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
Assets included in disposal group classified as held for sale
Total Current Assets
NON CURRENT ASSETS
Exploration and evaluation
Investment in associate
Available-for-sale financial assets
Plant and equipment
Total Non Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Liabilities included in disposal group classified as held for
sale
Provisions
Total Current Liabilities
NON CURRENT LIABILITIES
Provisions
Deferred tax liabilities
Total Non Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
Non-controlling interest
TOTAL EQUITY
As at 30 June
2017
$
As at 30 June
2016
$
Note
8
9
10
25
11
12
13
14
15
25
16
16
4
17
18
1,881,039
23,898
12,310
-
1,917,247
2,590,000
1,636,243
541,609
44,045
4,811,897
6,729,144
487,547
32,486
-
152,290
672,323
2,500,000
-
1,939,547
41,272
4,480,819
5,153,142
186,294
429,447
-
63,107
249,401
22,619
385,871
408,490
657,891
151,351
69,870
650,668
-
-
-
650,668
6,071,253
4,502,474
20,981,821
688,643
(15,599,211)
6,071,253
-
6,071,253
17,634,147
648,934
(13,766,217)
4,516,864
(14,390)
4,502,474
The consolidated statement of financial position should be read in conjunction with the accompanying notes.
52
Parkway Minerals NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
Issued
Capital
Accum-
ulated
Losses
Share Based
Payment
Reserve
AFS
Reserve
$
$
$
$
Non-
controlling
interest
$
Total
$
Balance at 1 July 2015
16,776,781
(13,584,313)
628,908
Loss for the year
Other comprehensive income:
Available for sale financial asset losses
Reclassification to profit or loss
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners:
Shares issued
Share issued transaction costs
Share based payments
-
-
-
-
(181,904)
-
-
(181,904)
761,000
(96,866)
193,232
-
-
-
-
-
-
-
-
-
20,026
Balance as at 30 June 2016
17,634,147
(13,766,217)
648,934
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
-
-
(11,646)
3,809,730
(2,744)
(184,648)
(969,773)
969,773
-
-
-
-
-
-
-
(2,744)
(969,773)
969,773
(184,648)
-
-
-
761,000
(96,866)
213,258
(14,390)
4,502,474
53
Parkway Minerals NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
Issued
Capital
Accum-
ulated
Losses
Share Based
Payment
Reserve
AFS
Reserve
$
$
$
$
Non-
controlling
interest
$
Total
$
Balance at 1 July 2016
17,634,147
(13,766,217)
648,934
Loss for the year
Other comprehensive income:
Available for sale financial asset losses
Reclassification to profit or loss
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners:
Shares issued
Share issued transaction costs
Share based payments
Deconsolidation of subsidiary
-
-
-
-
(1,832,994)
-
-
(1,832,994)
3,305,239
(236,515)
278,950
-
-
-
-
-
-
-
-
-
-
-
39,709
-
Balance as at 30 June 2017
20,981,821
(15,599,211)
688,643
-
-
(14,390)
4,502,474
48,110
(1,784,884)
(1,064,921)
1,064,921
-
-
-
-
-
-
-
48,110
-
-
-
(33,720)
(1,064,921)
1,064,921
(1,784,884)
3,305,239
(236,515)
318,659
(33,720)
-
6,071,253
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
54
Parkway Minerals NL
A.C.N. 147 346 334
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2017
OPERATING ACTIVITIES
Other Receipts
Payments to suppliers and employees
Government grant received
Interest received
NET CASH FLOWS USED IN OPERATING ACTIVITIES
INVESTING ACTIVITIES
Cash transferred on divestment of Subsidiary
Option and exclusivity fees received
Payments for plant and equipment
Payments for exploration expenditure
NET CASH FLOWS (USED IN)/PROVIDED BYINVESTING
ACTIVITIES
FINANCING ACTIVITIES
Proceeds from issue of shares
Share issue costs
NET CASH FLOWS PROVIDED BY FINANCING
ACTIVITIES
For the year
ended 30
June 2017
For the year
ended 30 June
2016
Note
$
$
6,197
(1,982,623)
284,722
15,077
(1,676,627)
23
-
(2,011,346)
179,094
14,762
(1,817,490)
(102,865)
-
(17,702)
(75,000)
(195,567)
3,305,239
(190,907)
3,114,332
-
250,000
-
-
250,000
761,000
(96,865)
664,135
NET INCREASE/(DECREASE) IN CASH AND CASH
EQUIVALENTS
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE
YEAR
1,242,138
(903,355)
638,901
1,542,256
8
1,881,039
638,901
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.
55
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements
Note 1: Corporate information
The financial report of Parkway Minerals NL for the year ended 30 June 2017 was authorised for issue in
accordance with a resolution of directors on 29 September 2017.
Parkway Minerals NL is a company limited by shares incorporated in Australia whose share are publicly
traded on the Australian Securities Exchange (ASX), OTC Pink and the Frankfurt Stock Exchange.
The nature of operations and principal activities of the Consolidated Entity are described in the directors’
report.
Note 2: Statement of significant accounting policies
(a) Basis of preparation
The financial report is a general purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, Accounting Standards and Interpretations and complies with
other requirements of the law. Parkway Minerals NL is a for-profit entity for the purpose of preparing the
financial statements.
The accounting policies detailed below have been consistently throughout the year presented unless
otherwise stated.
The financial report has also been prepared on a historical cost basis with the exception of available-for-sale
financial assets. Cost is based on the fair values of the consideration given in exchange for assets.
The financial report is presented in Australian dollars.
The company is a listed public company, incorporated in Australia and operating in Australia. The entity’s
principal activities are mineral exploration.
(b)
Adoption of new and revised standards
The Group applied all new and amended Australian Accounting Standards and Interpretations, which are
effective for annual periods beginning on 1 July 2016. Although these new standards and amendments
applied for the first time in 2017, they did not have a material impact on the annual consolidated financial
statements of the Group.
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not
yet effective and have not been adopted by the Group for the annual reporting period ended 30 June 2017
are outlined in the table below. The Company has decided not to early adopt any of the new and amended
pronouncement.
56
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
Application
date of
standard
Application
date for the
Group
1 January
2018
1 July 2018
Impact on the
Group’s
Financial
Statements
The Group has
determined that
the only impact
of this standard is
expected to be
the
reclassification
of available-for-
sale financial
assets as either
fair value
through profit
and loss or fair
value through
other
comprehensive
income. The
group have not
yet made a
decision what
classification will
be applied
Reference
Title
Summary
AASB 9
Financial
Instruments
AASB 9 (December 2014) is a new standard which
replaces AASB 139. This new version supersedes
AASB 9 issued in December 2009 (as amended)
and AASB 9 (issued in December 2010) and
includes a model for classification and
measurement, a single, forward-looking
‘expected loss’ impairment model and a
substantially-reformed approach to hedge
accounting.
The Standard is available for early adoption. The
own credit changes can be early adopted in
isolation without otherwise changing the
accounting for financial instruments.
Classification and measurement
AASB 9 includes requirements for a simpler
approach for classification and measurement of
financial assets compared with the requirements
of AASB 139.
The main changes are described below.
Financial assets
a.
Financial assets that are debt instruments will
be classified based on (1) the objective of
the entity's business model for managing the
financial assets; (2) the characteristics of the
contractual cash flows.
b. Allows an irrevocable election on initial
recognition to present gains and losses on
investments in equity instruments that are not
held for trading in other comprehensive
income. Dividends in respect of these
investments that are a return on investment
can be recognised in profit or loss and there
is no impairment or recycling on disposal of
the instrument.
Financial assets can be designated and
measured at fair value through profit or loss
at initial recognition if doing so eliminates or
significantly reduces a measurement or
recognition inconsistency that would arise
from measuring assets or liabilities, or
recognising the gains and losses on them, on
different bases.
c.
Financial liabilities
Changes introduced by AASB 9 in respect of
financial liabilities are limited to the measurement
of liabilities designated at fair value through profit
or loss (FVPL) using the fair value option.
Where the fair value option is used for financial
liabilities, the change in fair value is to be
accounted for as follows:
►
►
The change attributable to changes in
credit risk are presented in other
comprehensive income (OCI)
The remaining change is presented in
profit or loss
AASB 9 also removes the volatility in profit or loss
that was caused by changes in the credit risk of
liabilities elected to be measured at fair value. This
change in accounting means that gains or losses
attributable to changes in the entity’s own credit
risk would be recognised in OCI. These amounts
recognised in OCI are not recycled to profit or loss
if the liability is ever repurchased at a discount.
57
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
Reference
Title
Summary
Application
date of
standard
Application
date for the
Group
Impact on the
Group’s Financial
Statements
AASB 15
Revenue from
Contracts with
Customers
Impairment
The final version of AASB 9 introduces a new
expected-loss impairment model that will require
more timely recognition of expected credit losses.
Specifically, the new Standard requires entities to
account for expected credit losses from when
financial instruments are first recognised and to
recognise full lifetime expected losses on a more
timely basis.
Hedge accounting
Amendments to AASB 9 (December 2009 & 2010
editions and AASB 2013-9) issued in December 2013
included the new hedge accounting requirements,
including changes to hedge effectiveness testing,
treatment of hedging costs, risk components that
can be hedged and disclosures.
Consequential amendments were also made to
other standards as a result of AASB 9, introduced by
AASB 2009-11 and superseded by AASB 2010-7,
AASB 2010-10 and AASB 2014-1 – Part E.
AASB 2014-7 incorporates the consequential
amendments arising from the issuance of AASB 9 in
Dec 2014.
AASB 2014-8 limits the application of the existing
versions of AASB 9 (AASB 9 (December 2009) and
AASB 9 (December 2010)) from 1 February 2015 and
applies to annual reporting periods beginning on
after 1 January 2015.
AASB 15 Revenue from Contracts with Customers
replaces the existing revenue recognition standards
AASB 111 Construction Contracts, AASB 118
Revenue and related Interpretations (Interpretation
13 Customer Loyalty Programmes, Interpretation 15
Agreements for the Construction of Real Estate,
Interpretation 18 Transfers of Assets from Customers,
Interpretation 131 Revenue—Barter Transactions
Involving Advertising Services and
Interpretation 1042 Subscriber Acquisition Costs in
the Telecommunications Industry).
AASB 15 incorporates the requirements of IFRS 15
Revenue from Contracts with Customers issued by
the International Accounting Standards Board
(IASB) and developed jointly with the US Financial
Accounting Standards Board (FASB).
58
1 January
2018
1 July 2018
The Group is in
the process of
evaluating the
impact of the
standard.
The impact on
the Group is not
expected to be
material given
that no material
revenue is
currently being
generated.
The decision on
the transition
method to be
adopted is yet to
be made.
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
Reference
Title
Summary
Application
date of
standard
Application
date for the
Group
Impact on the
Group’s Financial
Statements
Step 2: Identify the performance
Step 1: Identify the contract(s) with a
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to
AASB 15 specifies the accounting treatment for
revenue arising from contracts with customers
(except for contracts within the scope of other
accounting standards such as leases or financial
instruments). The core principle of AASB 15 is that an
entity recognises revenue to depict the transfer of
promised goods or services to customers in an
amount that reflects the consideration to which the
entity expects to be entitled in exchange for those
goods or services. An entity recognises revenue in
accordance with that core principle by applying
the following steps:
(a)
customer
(b)
obligations in the contract
(c)
(d)
the performance obligations in the contract
(e)
entity satisfies a performance obligation
AASB 2015-8 amended the AASB 15 effective date
so it is now effective for annual reporting periods
commencing on or after 1 January 2018. Early
application is permitted.
AASB 2014-5 incorporates the consequential
amendments to a number Australian Accounting
Standards (including Interpretations) arising from
the issuance of AASB 15.
AASB 2016-3 Amendments to Australian Accounting
Standards – Clarifications to AASB 15 amends AASB
15 to clarify the requirements on identifying
performance obligations, principal versus agent
considerations and the timing of recognising
revenue from granting a licence and provides
further practical expedients on transition to AASB
15.
Step 5: Recognise revenue when (or as) the
59
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
Reference
Title
Summary
Application
date of
standard
Application
date for the
Group
Impact on the
Group’s Financial
Statements
The Group does
not expect any
material impact
from this standard
since there are
no current
operating lease
commitments in
place.
AASB 16
Leases
The key features of AASB 16 are as follows:
1 January
2019
1 July 2019
Lessee accounting
• Lessees are required to recognise assets
and liabilities for all leases with a term of
more than 12 months, unless the
underlying asset is of low value.
• A lessee measures right-of-use assets
similarly to other non-financial assets and
lease liabilities similarly to other financial
liabilities.
• Assets and liabilities arising from a lease
are initially measured on a present value
basis. The measurement includes non-
cancellable lease payments (including
inflation-linked payments), and also
includes payments to be made in
optional periods if the lessee is
reasonably certain to exercise an option
to extend the lease, or not to exercise an
option to terminate the lease.
• AASB 16 contains disclosure requirements
for lessees.
Lessor accounting
• AASB 16 substantially carries forward the
lessor accounting requirements in AASB
117. Accordingly, a lessor continues to
classify its leases as operating leases or
finance leases, and to account for those
two types of leases differently.
• AASB 16 also requires enhanced
disclosures to be provided by lessors that
will improve information disclosed about
a lessor’s risk exposure, particularly to
residual value risk.
AASB 16 supersedes:
(a) AASB 117 Leases
(b) Interpretation 4 Determining whether an
Arrangement contains a Lease
(c) SIC-15 Operating Leases—Incentives
(d) SIC-27 Evaluating the Substance of Transactions
Involving the Legal Form of a Lease
The new standard will be effective for annual
periods beginning on or after 1 January 2019. Early
application is permitted, provided the new revenue
standard, AASB 15 Revenue from Contracts with
Customers, has been applied, or is applied at the
same date as AASB 16.
(c)
Statement of compliance
The financial report complies with Australian Accounting Standards and International Financial Reporting
Standards (IFRS).
60
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(d) Critical accounting estimates and judgements
The application of accounting policies requires the use of judgements, estimates and assumptions about
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in
the year in which the estimate is revised if it affects only that year or in the year of the revision and future
years if the revision affects both current and future years.
Share-based payment transactions
The Company measures the share-based payment transactions with employees by reference to the fair
value of the equity instruments at the date at which they are granted. Estimating fair value for share based
payment transactions requires determining the most appropriate valuation model, which is dependent on the
terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the
valuation model including the expected life of the share option, volatility and dividend yield and making
assumptions about them. The assumptions and models used for estimating fair value for share-based
payment transactions are disclosed in Note 19.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only when management considers
that it is probable that sufficient future tax profits will be available to utilise those temporary differences.
Significant management judgement is required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and the level of future taxable profits over the next two years
together with future tax planning strategies.
Impairment of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of
factors, including whether the Company decides to exploit the related lease itself or, if not, whether it
successfully recovers the related exploration and evaluation asset through sale.
Investment in an associate
The Group’s investment in an an associate is accounted for using the equity method. Significant judgement
is also used to determine if there is considered to be significant influence exerted over the investment.
Impairment is reviewed by considering the higher of the value in use or fair value less cost of disposal of
the investment. For the current year it was determined that the fair value less cost of disposal (determined
by the share price of the investment at 30 June 2017) was below the carrying value of the investment at 30
June 2017. Accordingly an impairment charge of $1,453,305 was recorded. Refer to note 12 for details of
the investment in an associate.
(d) Share-based payment transactions
Employees (including senior executives) of the Company receive remuneration in the form of share-based
payment transactions, whereby employees render services as consideration for equity instruments (equity-
settled transactions).
61
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
The cost of equity-settled transactions is recognised, together with a corresponding increase in other capital
reserves in equity, over the period in which the performance and/or service conditions are fulfilled. The
cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired and the Company’s best estimate of the number
of equity instruments that will ultimately vest. The income statement expense or credit for a period
represents the movement in cumulative expense recognised as at the beginning and end of that period and
is recognised in equity based payments expense (Note 19).
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions for
which vesting are conditional upon a market or non-vesting condition. These are treated as vesting
irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.
When the terms of an equity-settled transaction award are modified, the minimum expense recognised is
the expense as if the terms had not been modified, if the original terms of the award are met. An additional
expense is recognised for any modification that increases the total fair value of the share based payment
transaction, or is otherwise beneficial to the employee as measured at the date of modification.
(e)
Share-based payment transactions (continued)
When an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. This includes any award where non-
vesting conditions within the control of either the entity or the employee are not met. However, if a new
award is substituted for the cancelled award, and designated as a replacement award on the date that it is
granted, the cancelled and new awards are treated as if they were a modification of the original award, as
described in the previous paragraph. The dilutive effect of outstanding options is reflected as additional
share dilution in the computation of diluted earnings per share (further details are given in Note 7).
(f)
Going concern
This report has been prepared on the going concern basis, which contemplates the continuity of normal
business activity and the realisation of assets and settlement of liabilities in the normal course of business.
The Consolidated entity has incurred a net loss after tax for the year ended 30 June 2017 of $1,784,884
(2016: $184,648) and experienced net cash outflows from operating activities of $1,676,627 (2016:
$1,817,490). At the end of the reporting year, the Directors recognise the need to raise additional funds via
equity raising to fund future planned exploration activities.
The Directors have reviewed the Consolidated entity’s financial position and are of the opinion that the use
of the going concern basis of accounting is appropriate as they believe the Consolidated entity will be
successful in securing additional funds through equity issues.
Should the Consolidated entity not achieve the matters set out above, there is significant uncertainty
whether the Consolidated entity will continue as a going concern and therefore whether it will realise its
assets and extinguish its liabilities in the normal course of business and at the amounts stated in the
financial report.
The financial report does not contain any adjustments relating to the recoverability and classification of
recorded assets or to the amounts or classification of recorded assets or liabilities that might be necessary
should the Consolidated entity not be able to continue as a going concern.
62
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(g)
Exploration and evaluation expenditure
Exploration and evaluation costs are written off in the year they are incurred apart from acquisition costs
which are carried forward where right of tenure of the area of interest is current and they are expected to be
recouped through sale or successful development and exploitation of the area of interest or, where
exploration and evaluation activities in the area of interest have not reached a stage that permits
reasonable assessment of the existence of economically recoverable reserves.
Where an area of interest is abandoned or the directors decide that it is not commercial, any accumulated
acquisition costs in respect of that area are written off in the financial period the decision is made. Each
area of interest is also reviewed at the end of each accounting period and accumulated costs written off to
the extent that they will not be recoverable in the future. Amortisation is not charged on costs carried
forward in respect of areas of interest in the development phase until production commences.
(h) Plant & equipment
Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated
impairment in value. Depreciation is calculated on a straight-line basis over the estimated useful life of the
asset as follows:
Plant and equipment – over 2 to 15 years
Impairment
The carrying values of plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable.
For an asset that does not generate largely independent cash inflows, the recoverable amount is
determined for the cash-generating unit to which the asset belongs.
If any indication exists of impairment and where the carrying values exceed the estimated recoverable
amount, the assets or cash-generating units are written down to their recoverable amount.
The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset.
Derecognition
An item of plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the item) is
included in the statement of comprehensive income in the period the item is derecognised.
(i)
Income tax
Current tax assets and liabilities for the current year and prior periods are measured at amounts expected
to be recovered from or paid to the taxation authorities based on the current year’s taxable income. The tax
rates and tax laws used for computations are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at balance date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except where the
deferred income tax liability arises from the initial recognition of goodwill of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.
63
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(i)
Income tax (continued)
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of
unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences, and the carry-forward of unused tax assets and unused
tax losses can be utilised except where the deferred income tax asset relating to the deductible temporary
difference arises from the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or
loss.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be
recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the
statement of comprehensive income.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority.
(j) GST
Revenues, expenses and assets are recognised net of the amount of GST except:
• where the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of
the expense item as applicable; and
•
receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the consolidated statement of financial position.
Cash flows are included in the consolidated statement of cash flows on a gross basis and the GST
component of cash flows arising from investing and financing activities, which is recoverable from, or
payable to, the taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the taxation authority.
64
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(k)
Provisions and employee benefits
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation.
When the Company expects some or all of a provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in the statement of comprehensive income net
of any reimbursement.
Provisions are measured at the present value of management’s best estimate of the expenditure required
to settle the present obligation at the balance date. If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects the time value of money and the risks
specific to the liability. The increase in the provision resulting from the passage of time is recognised in
finance costs.
Employee leave benefits
i. Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries including non-monetary benefits, annual leave and accumulating sick
leave due to be settled within 12 months of the reporting date are recognised in provisions in respect of
employees’ services up to the reporting date and are measured at the amounts expected to be paid when
the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken
and measured at the rates paid or payable.
ii. Long service leave
The liability for long service leave is recognised and measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date using the
projected unit credit method. Consideration is given to the expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted using
market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as
closely as possible, the estimated future cash outflows.
(l)
Cash and cash equivalents
Cash and cash equivalents in the consolidated statement of financial position comprise cash at bank and in
hand and short-term deposits with an original maturity of three months or less.
For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash
and cash equivalents as defined above, net of outstanding bank overdrafts.
(m) Receivables
Receivables, which generally have 30-90 day terms, are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest rate method, less an allowance for any uncollectible
amounts.
Collectability or receivables are reviewed on an ongoing basis. Debts that are known to be uncollectible are
written off when identified. An allowance for doubtful debts is raised when there is objective evidence that
the Company will not be able to collect the debt.
65
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(n) Prepayments
Prepayment for goods and services which are to be provided in future years are recognised as
prepayments. Prepayments are recorded in the other assets in the statement of financial position.
(o) Revenue recognition
Revenue is recognised and measured at the fair value of the consideration received or receivable to the
extent that it is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured. The following specific recognition criteria must also be met before revenue is
recognised:
Interest Income
Income is recognised as the interest accrues (using the effective interest method, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the
net carrying amount of the financial asset.
Fee Income
Revenue from geological services provided is recognised as the services are rendered, the revenue and
the costs incurred or to be incurred in respect of the transactions can be measured reliably and the
economic benefits associated with the transaction will flow to the Company.
Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and
all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as
income over the period necessary to match the grant on a systematic basis to the costs that it is intended to
compensate. When the grant relates to an asset, it is recognised as deferred income and released to
income in equal amounts over the expected useful life of the related asset.
When the Company receives non-monetary grants, the asset and the grant are recorded gross at nominal
amounts and released to the income statement over the expected useful life and pattern of consumption of
the benefit of the underlying asset by equal annual installments. When loans or similar assistance are
provided by governments or related institutions with an interest rate below the current applicable market
rate, the effect of this favourable interest is regarded as additional government grants.
(p) Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of tax, from the proceeds.
(q) Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and
services provided to the Company prior to the end of the financial year that are unpaid and arise when the
Company becomes obliged to make future payments in respect of the purchase of these goods and
services.
66
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(r)
Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the Company adjusted to
exclude any costs of servicing equity (other than dividends) divided by the weighted average number of
ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the Company adjusted for:
•
•
costs of servicing equity (other than dividends);
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that
have been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the
dilution of potential ordinary shares;
•
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted
for any bonus element.
(s)
Investments and other financial assets
Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are
classified as either financial assets at fair value through profit or loss, loans and receivables, held-to-
maturity investments, or available-for-sale financial assets. When financial assets are recognised initially,
they are measured at fair value, plus, in the case of investments not at fair value through profit or loss,
directly attributable transaction costs. The Company determines the classification of its financial assets
after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial
year-end.
(i) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as
held-to-maturity when the Company has the positive intention and ability to hold to maturity. Investments
intended to be held for an undefined period are not included in this classification. Investments that are
intended to be held-to maturity, such as bonds, are subsequently measured at amortised cost. This cost is
computed as the amount initially recognised minus principal repayments, plus or minus the cumulative
amortisation using the effective interest method of any difference between the initially recognised amount
and the maturity amount. This calculation includes all fees and points paid or received between parties to
the contract that are an integral part of the effective interest rate, transaction costs and all other premiums
and discounts. For investments carried at amortised cost, gains and losses are recognised in profit and loss
when the investment are derecognised or impaired, as well as through the amortisation process.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. Such assets are carried at amortised cost using the effective interest method.
Gains and losses are recognised in profit and loss when the loans and receivables are derecognised or
impaired, as well as through the amortisation process.
(iii) Available for sale (AFS) financial assets
AFS financial assets are non-derivative financial assets that are either designated to this category or
do not qualify for inclusion in any of the other categories of financial assets. The Group’s AFS
financial assets relate to listed securities. AFS financial assets are measured at fair value. Gains and losses
are recognised in other comprehensive income and reported within the AFS reserve within equity, except
for impairment losses and foreign exchange differences on monetary assets, which are recognised in profit
or loss. When the asset is disposed of or is determined to be impaired the cumulative gain or loss
recognised in other comprehensive income is reclassified from the equity reserve to profit or loss and
presented as a reclassification adjustment within other comprehensive income.
Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal
can be objectively related to an event occurring after the impairment loss was recognised. For AFS
equity investments impairment reversals are not recognised in profit loss and any subsequent
increase in fair value is recognised in other comprehensive income.
67
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(t)
Impairment of financial assets
The Company assesses at each balance date whether a financial asset or group of financial assets is
impaired.
Available-for-sale investments
If there is objective evidence that an available-for-sale investment is impaired, an amount comprising the
difference between its cost and its current fair value, less any impairment loss previously recognised in
profit and loss, is transferred from equity to the statement of comprehensive income. Reversals of
impairment losses for equity instruments classified as available-for-sale are not recognised in profit.
Reversals of impairment losses for debt instruments are reversed through profit and loss if the increase in
an instrument’s fair value can be objectively related to an event occurring after the impairment loss was
recognised in profit or loss.
(u)
Leases
Operating Lease payments are recognised as an operating expense in the statement of comprehensive
income on a straight-line basis over the lease term. Operating lease incentives are recognised as a liability
when received and subsequently reduced by allocating lease payments between rental expense and the
reduction of the liability.
(v)
Investment in associate
The Group’s investments in associates are accounted for using the equity method. Under the equity
method, the investment in an associate is initially recognised at cost. The carrying amount of the
investment is adjusted to recognise changes in the Group’s share of net assets of the associate since the
acquisition date.
The consolidated statement of profit or loss reflects the Group’s share of the results of operations of the
associate. Any change in OCI of those investees is presented as part of the Group’s OCI. In addition, when
there has been a change recognised directly in the equity of the associate, the Group recognises its share
of any changes, when applicable, in the statement of changes in equity.
Unrealised gains and losses resulting from transactions between the Group and the associate are
eliminated to the extent of the interest in the associate.
The aggregate of the Group’s share of profit or loss of an associate is shown on the face of the statement
of profit or loss outside operating profit and represents profit or loss after tax and non-controlling interests in
the subsidiaries of the associate.
The financial statements of the associate are prepared for the same reporting period as the Group. When
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
After application of the equity method, the Group determines whether it is necessary to recognise an
impairment loss on its investment in its associate. At each reporting date, the Group determines whether
there is objective evidence that the investment in the associate is impaired. If there is such evidence, the
Group calculates the amount of impairment as the difference between the recoverable amount of the
associate and its carrying value, then recognises the loss as ‘Share of profit of an associate’ in the
statement of profit or loss.
Upon loss of significant influence over the associate, the Group measures and recognises any retained
investment at its fair value. Any difference between the carrying amount of the associate upon loss of
significant influence and the fair value of the retained investment and proceeds from disposal is recognised
in consolidated statement of comprehensive income.
68
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 2: Statement of significant accounting policies (continued)
(w) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
Note 3: Segment information
The Company has based its operating segment on the internal reports that are reviewed and used by the
executive management team (“Chief Operating Decision Makers”) in assessing performance and in
determining the allocation of resources.
The Company currently does not have production and is only involved in exploration. As a consequence,
activities in the operating segment are identified by management based on the manner in which resources
are allocated, the nature of the resources provided and the identity of the manager and country of
expenditure. Information is reviewed on a whole of entity basis.
Based on these criteria the Company has only one operating segment, being exploration, and the segment
operations and results are reported internally based on the accounting policies as described in Note 2 for
the computation of the Company’s results presented in this set of financial statements.
Note 4: Income tax
(a) Income tax expense
Current tax
Deferred tax
Total tax expense
2017
$
2016
$
-
385,871
385,871
-
-
-
(b) Numerical reconciliation of loss for the year to
prima facie tax payable
Loss from continuing operations before income tax
expense
Prima facie tax benefit at the Australian tax rate of
27.5% (2016: 30%)
(1,399,013)
(184,648)
(384,729)
(55,394)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Share based payment
Non-deductible expenses
Non-assessable income
Gain on sale of shares
Deferred tax assets not brought to account
Income tax expense
59,868
2,517
(78,299)
155,891
630,623
385,871
45,557
2,266
(53,728)
-
61,299
-
69
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 4: Income tax (continued)
(c) Deferred tax assets
Capitalised Expenditure
Accrued expenses
Business related deduction
Employee entitlement provisions
Tax losses
Deferred tax asset not recognised
Offset from deferred tax liabilities
Net deferred tax assets
(d) Deferred tax liabilities
Investment in associate
Exploration tenement
Financial assets
Offset against deferred tax assets
Net deferred tax liabilities
65,580
27,808
124,652
24,419
3,606,189
3,848,648
(3,032,830)
815,818
(815,818)
-
385,871
687,500
128,318
1,201,689
(815,818)
385,871
71,542
21,788
111,613
26,136
3,847,776
4,078,855
(2,769,491)
1,309,364
(1,309,364)
-
-
750,000
559,364
1,309,364
(1,309,364)
-
The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current
tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income
taxes levied by the same tax authority. The taxation benefits of certain tax losses and temporary differences
have not been brought to account since it is not probable whether future assessable income would be
derived of a nature and of an amount sufficient to enable the benefits from the deductions to be realised.
The tax losses not brought to account is $13,113,414 (2016: $12,825,920).
Note 5: Key management personnel remuneration
Short-term employee benefits
Post-employment benefits
Share-based payments
Total compensation
Note 6: Auditor’s remuneration
Remuneration of the auditor of the Company for:
- auditing or reviewing the financial report
- research & development tax concession
- tax compliance
70
2017
$
473,923
36,004
133,451
643,378
2016
$
445,914
47,004
128,699
621,617
2017
$
2016
$
32,315 32,445
15,169 13,303
4,635
50,383
4,635
52,119
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 7: Loss per share
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Net loss
Loss used in calculating basic and diluted loss per share
2017
$
0.43
0.43
(1,832,994)
(1,832,994)
2016
$
0.07
0.07
(181,904)
(181,904)
Number
Number
Weighted average number of ordinary shares used in the
calculation of basic and diluted loss per share
431,254,790
267,582,650
During the year there were no listed or key management personnel options exercised.
The options issued under Employee Option Plan (EOP) are not considered dilutive for the purpose of the
calculation of diluted earnings/loss per share as their conversion to ordinary shares would not decrease the
net profit from continuing operations per share. Consequently, diluted earnings/loss per share is the same
as basic loss per share. As of 30 June 2017, a total of 146,097,012 potential ordinary shares had been
issued, this is including 22,796,691 options and 123,300,321 partly paid shares respectively.
Subsequent to the reporting date, the Company undertook a capital raising, raising a total of $850,000
before costs at $0.01 per share. A total of 85,000,000 ordinary shares have been issued as a result of the
capital raising and the Company has announced share purchase plan,expect to raise additional $1million,
This would significantly change the number of ordinary shares or potential ordinary shares outstanding
between the reporting date and the date of completion of these financial statements.
Note 8: Cash and cash equivalents
Cash at bank and on hand
Reconciliation of cash and cash equivalents
30-Jun-17
$
1,881,039
1,881,039
30-Jun-16
$
487,547
487,547
Cash at the end of financial period is shown in the consolidated statement of cash flows is reconciled to
items in the consolidated statement of financial position as follows:
Included in assets held for sale (Note 25)
Cash and cash equivalents
Note 9: Trade and other receivables
Trade debtors
GST Receivables
-
1,881,039
1,881,039
151,354
487,547
638,901
30-Jun-17
$
30-Jun-16
$
1,618
22,280
23,898
262
32,224
32,486
(i) Non-trade debtors are non-interest bearing and are generally on 30-90 days terms. The carrying
amounts of these receivables represent fair value and are not considered to be impaired.
71
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 10: Other assets
Prepayments
Note 11: Exploration expenditure
Acquisition of mineral rights - Dandaragan Trough tenements
Acquisition of mineral rights – Lake Barlee
30-Jun-17
$
30-Jun-16
$
12,310
12,310
-
-
30-Jun-17
$
2,575,000
15,000
2,590,000
30-Jun-16
$
2,500,000
-
2,500,000
The ultimate recoupment of acquisition costs carried forward for exploration and evaluation phases is
dependent on the successful development and commercial exploitation.
Note 12: Investment in associate
On 19 January 2017, the Group disposed of its 55% interest in East Exploration Pty Ltd in exchange for
19,249,922 ordinary shares (being a 26% interest) in Davenport Resources Limited (“Davenport”), a potash
exploration group incorporated in Australia and listed on ASX following its successful IPO on the same date.
In addition to the ordinary shares, the Group was also issued:
-
-
17,874,928 “milestone one” shares which will be convertible into ordinary shares in Davenport
Resources Limited if within four years after completion (or such lesser period as is satisfactory to
ASX) of the first JORC code compliant inferred resources exceeds of one of the following:
a) 250 million tonnes of potash at or above 11% K2O by content, or
b) 150 million tonnes of potash at or above 12% K2O by content, or
c) 100 million tonnes of potash at or above 13% K2O by content, or
d) 75 million tonnes of potash at or above 15% K2O by content, or
e) 50 million tonnes of potash at or above 18% K2O by content.
17,874,928 “milestone two” shares which will be convertible into ordinary shares in Davenport
Resources Limited if within six years after completion (or such lesser period as is satisfactory to
ASX) of all mining approvals and utility contracts required to construct and operate a minimum
500,000 tonnes per annum potash mine on the South Harz Project (including all government
approvals, water and energy contracts necessary to operate the mine).
The fair value of the consideration was estimated to be $3,849,984 being the fair value of the 19,249,922
ordinary shares at their IPO price. The fair value of milestone shares were estimated to be zero at the
disposal date due to uncertainties surrounding the achievement of these milestones. A gain on
deconsolidation of the subsidiary $3,780,837 was recognised as a result, which is calculated as follows:
Fair value of shares in Davenport received
Less: carrying value of net assets disposed
Gain on disposal
$
3,849,984
(69,147)
3,780,837
The Group’s interest in Davenport is accounted for using the equity method in the consolidated financial
statements on the basis that it was concluded Parkway has significant influence due to the 26% interest
that it has in the entity, and due to a Director of Parkway being the non-executive chairman of Davenport.
The following table sets out the summarised financial information of the Group’s investment in Davenport:
72
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 12: Investment in associate (continued)
Carrying value at the initial recognition on 19 January 2017
Add: share of movement in the net assets of the Davenport from
initial recognition to 30 June 2017
Impairment*
Carrying value at 30 June 2017
$
3,849,984
(760,436)
(1,453,305)
1,636,243
* As at 30 June 2017 the consolidated entity undertook an assessment for impairment as the fair value less
cost of disposal of the investment was below its carrying value. Accordingly an impairment charge of
$1,453,305 was recorded to bring the carrying value to its fair value less cost of disposal.
The following is summarised financial information for Davenport at 30 June 2017 and for the period from 19
January 2017 to 30 June 2017 based on its consolidated financial statements modified for differences in the
Group’s accounting policies:
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Equity
Revenue (100%)
Loss from continuing operations (100%)
Other comprehensive income
Total comprehensive loss for the period
Group's share of loss for the period
30-Jun-17
$
4,426,841
146,367
(380,567)
-
4,192,641
For the period 19
January 2017 to
30 June 2017
$
55,420
(2,924,753)
-
(2,924,753)
(760,436)
Contingent liabilities
The associate has guaranteed a rental bond for the operating premises. At 30 June 2017 the extent of
possible exposure is $104,212 (2016: nil)
Commitments
The associate has the following commitments (100%). Operating lease commitments are a non-cancellable
lease of office premises for a three year term entered into in August 2015 and a lease of a business centre
for a one year term entered into in September 2016.
Exploration expenditure
Payable within one year
Operating leases
Payable within one year
Payable in one to five years
2017
$
217,022
217,022
159,512
15,796
175,308
73
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 13: Financial assets
Investment – available for sale financial assets
Reconciliation of movement for the year:
Opening Balance
Gain on conversion of shares in Lepidico Ltd to shares in
Platypus Minerals Ltd
Loss on conversion of shares in Lepidico Ltd to shares in
Lithium Australia NL
Impairment of financial assets
30-Jun-17
$
30-Jun-16
$
541,609
541,609
1,939,547
1,939,547
1,939,547
75,000
-
2,834,320
(333,017)
(1,064,921)
(969,773)
541,609
1,939,547
During the 2015 financial year, the Consolidated entity subscribed to shares in Lepidico Ltd, a technology
developer who have developed a process of extracting Lithium from Lithium bearing micas. Lepidico Ltd
was acquired by Platypus Minerals Ltd on 8 June 2016. The Consolidated entity received 96,977,330
Platypus shares in consideration of their interest in Lepidico and recognised a gain on disposal of Lepidico
shares amounting to $2,834,320. As at 30 June 2016, the Consolidated entity recognised impairment loss
of $969,773 for the financial assets due to the decline in value between the acquisition and 30 June 2016.
On 28 November 2016, Platypus Minerals Ltd changed its name to Lepidico Ltd. On 28 March 2017 the
Consolidated entity accepted Lithium Australia NL’s offer of 1 Lithium Australia share for 13.25 Lepidico
shares held. On 28 March 2017, the Consolidated entity has recognised an impairment loss on the Lepidico
shares amounting to $581,864 and has received 7,319,044 Lithium Australia NL shares in consideration of
Lepidico Ltd shares held. The Consolidated entity has recognised a loss on disposal of Lepidico shares
amounting to $333,017 on the transaction date. As at 30 June 2017, the Consolidated entity recognised a
further impairment loss of $483,057 for the financial assets due to the significant decline in value between
the acquisition and 30 June 2017.
Fair value of the financial assets at 30 June 2017 and 30 June 2016 has been determined by reference to
quoted bid prices in active markets at the reporting date and are categorised within Level 1 of the fair value
hierarchy.
Note 14: Plant and equipment
Offfice equipment at cost
Less accumulated depreciation
Plant and equipment at cost
Less accumulated depreciation
Computer software at cost
Less accumulated depreciation
Furniture fixtures at cost
Less accumulated depreciation
Total plant and equipment
30-Jun-17
$
30-Jun-16
$
15,743
(8,633)
7,110
69,366
(49,349)
20,017
40,340
(31,888)
8,452
8,644
(178)
8,466
44,045
17,695
(12,621)
5,074
72,835
(48,463)
24,372
42,452
(30,626)
11,826
-
-
-
41,272
74
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 14: Plant and equipment(continued)
Office
Equipment
$
Plant and
Equipment
$
Computer
Software
$
Furniture
Fixtures
$
Total
$
Year ended 30 June 2016
Opening net carrying value
Depreciation charge for the year
Closing net carrying value
7,271
(2,197)
5,074
30,475
(6,103)
24,372
15,767
(3,941)
11,826
-
-
-
Year ended 30 June 2017
Opening net carrying value
Additions
Depreciation charge for the year
Closing net carrying value
5,074
6,654
(4,618)
7,110
24,372
2,406
(6,761)
20,017
11,826
-
(3,374)
8,452
-
8,644
(178)
8,466
53,513
(12,241)
41,272
41,272
17,704
(14,931)
44,045
Note 15: Trade and other payables
Trade payables
Stamp duty payable
30-Jun-17
$
186,294
-
186,294
30-Jun-16
$
261,922
167,525
429,447
Due to short term nature of these payables, their carrying value is assumed to approximate their fair value.
Note 16: Provisions
Employee benefits – current liability
Employee benefits - non-current liability
Note 17: Contributed equity
Ordinary shares - fully paid
Contributing Shares - partly
paid
30-Jun-17
$
30-Jun-16
$
63,107
63,107
69,870
69,870
30-Jun-17
$
30-Jun-16
$
22,619
22,619
-
-
30-Jun-17
30-Jun-16
No.
$
No.
$
359,144,634
20,981,821
234,513,572
17,634,147
123,300,321
-
35,960,024
-
482,444,955
20,981,821
270,473,596
17,634,147
75
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 17: Contributed equity(continued)
Effective 1 July 1998, the corporation legislation abolished the concepts of authorised capital and par value
shares. Accordingly, the Company does not have authorised capital or par value in respect of its issued
shares. Fully paid ordinary shares carry one vote per share and carry the rights to dividends.
When managing capital (which is defined as the Company's total equity amounting to $6,071,253 (2016:
$4,502,474), the Board's objective is to ensure the entity continues as a going concern as well as to
maintain optimal returns to shareholders and benefits for other stakeholders. The Board also aims to
maintain a capital structure that ensures the lowest cost of capital available for future exploration and
development activity. The Company is not subject to any externally imposed capital requirements.
76
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 17: Contributed equity (continued)
Movements in ordinary shares on issue of the legal parent are:
Note
17.8
17.5
17.7
17.4
17.3
17.1
17.2
17.6
17.9
17.10
At the beginning of reporting year
Issue of 250,000 shares to consultant in lieu of services
provided
Issue of 600,000 shares to consultant in lieu of services
provided
Issue of 100,000 shares to consultant in lieu of services
provided
Issue of 300,000 shares to consultant in lieu of services
provided
Issue of 19,025,000 shares via private share placement
Issue of 935,278 shares to directors & senior management via
remuneration
Issue of 110,903 shares to directors &senior management via
remuneration
Issue of 105,517 shares to consultant via employees share plan
Issue of 2,081,819 shares to directors & senior management via
remuneration sacrifice share plan
Shares to be issued under the consultant in lieu of services
provided
Issue of 57,127,998 shares via private share placement
Issue of 37,700,063 shares via share purchase plan
Issue of 15,280,667 shares via private share placement
Issue of 425,652 shares to consultant in lieu of services
provided
Issue of 196,640 shares to consultant for capital raising serivces 17.15
Issue of 1,643,218 shares to contultant for in lieu of services
provided
Issue of 1,074,974 shares to directors and senior management
via remuneration sacrifice share plan
Issue of 254,128 shares to consultant in lieu of services
provided
Issue of 203,664 shares to consultant in lieu of services
provided
Issue of 40,779 shares for the conversion of partly paid shares
Issue of 1,818,167 shares to directors and senior management
via remuneration sacrifice share plan
Issue of 423,819 shares to consultant in lieu of services
provided
Issue of 508,583 shares to cconsultant in lieu of services
provided
Issue of 692,151 shares for the acquisition of exploration licence 17.24
Issue of 3,902,596 shares to directors and senior management
via remuneration sacrifice share plan
Issue of 2,001,351 shares to consultants in lieu of services
provided
Issue of 275,179 shares to consultant in lieu of services
provided
Shares to be issued under the consultant in lieu of services
provided
17.11
17.12
17.13
17.20
17.14
17.17
17.16
17.22
17.19
17.27
17.28
17.26
17.25
17.21
17.23
17.18
2017
Number
235,575,005
2016
Number
211,005,055
-
-
-
-
-
-
-
-
-
-
250,000
600,000
100,000
300,000
19,025,000
935,278
110,903
105,517
2,081,819
1,061,433
57,127,998
37,700,063
15,280,667
425,652
196,640
1,643,218
1,074,974
254,128
203,664
40,779
1,818,167
423,819
508,583
692,151
3,902,596
2,001,351
275,179
93,340
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Reserved shares
At the end of the reporting year
359,237,974
235,575,005
(3,150,000)
(3,150,000)
356,087,974
232,425,005
77
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 17: Contributed equity (continued)
Movements in ordinary shares on issue of the legal parent are:
At the beginning of reporting year
17,969,172 17,111,806
Note
2017
$
2016
$
17.8
17.7
17.6
17.9
17.10
17.1
17.2
17.3
17.4
17.5
Issue of 250,000 shares to consultant in lieu of services provided
Issue of 600,000 shares to consultant in lieu of services provided
Issue of 100,000 shares to consultant in lieu of services provided
Issue of 300,000 shares to consultant in lieu of services provided
Issue of 19,025,000 shares via private share placement
Issue of 935,278 shares to directors and senior management via
remuneration
Issue of 110,903 shares to directors and senior management via
remuneration
Issue of 105,517 shares to consultant via employees share plan
Issue of 2,081,819 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 1,061,433 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 57,127,998 shares via private share placement
Issue of 37,700,063 shares via share purchase plan
Issue of 15,280,667 shares via private share placement
Issue of 425,652 shares to consultant in lieu of services provided
Issue of 196,640 shares to consultant for capital raising serivces
Issue of 1,643,218 shares to contultant for in lieu of services
provided
Issue of 1,074,974 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 254,128 shares to consultant in lieu of services provided
Issue of 203,664 shares to consultant in lieu of services provided
Issue of 40,779 shares for the conversion of partly paid shares
Issue of 1,818,167 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 423,819 shares to consultant in lieu of services provided
Issue of 508,583 shares to consultant in lieu of services provided
Issue of 692,151 shares for the acquisition of exploration licence
Issue of 3,902,596 shares to directors and senior management via
remuneration sacrifice share plan
Issue of 2,001,351 shares to consultants in lieu of services provided 17.26
17.27
Issue of 275,179 shares to consultant in lieu of services provided
Shares to be issued under the consultant in lieu of services provided 17.28
17.29
Equity raising costs
17.11
17.12
17.13
17.14
17.15
17.18
17.19
17.20
17.22
17.23
17.24
17.16
17.17
17.21
17.25
Reserved shares
At the end of the reporting year
78
-
-
-
-
-
-
-
-
-
-
12,000
30,000
5,000
14,400
761,000
28,619
3,438
3,271
64,328
32,175
1,713,840
1,130,982
458,420
13,000
5,899
48,600
32,175
7,500
6,000
1,998
42,900
10,000
12,000
15,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
53,624
27,500
3,846
905
(236,515)
-
-
-
-
(96,865)
21,316,846 17,969,172
(335,025)
(335,025)
20,981,821 17,634,147
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 17: Contributed equity (continued)
Movements in partly paid contributing shares on issue of the legal parent are:
Note
2017
Number
2016
Number
At the beginning of reporting year
35,960,024 35,960,024
Conversion of partly paid contributing shares to fully paid ordinary
shares
Issue of 87,381,076 partly paid contributing shares pursuant to non-
renounceable entitlement issue
17.20
17.30
(40,779)
87,381,076
-
-
At the end of the reporting year
123,300,321 35,960,024
Outstanding amount per partly paid contributing share at 30 June 2017 is $0.049 (2016: $0.049).
The partly paid contributing share are issued with outstanding calls of 4.9 cents each. The partly paid
contributing share carry a right to a dividend on the same basis as holders of Ordinary Shares. Partly paid
contributing shares carry the right to vote in proportion which the amount paid (not credited) bears to the
total amounts paid and payable (excluding amounts credited). The company has the power to forfeit any
shares where the call remains unpaid 14 days after the call was payable. The company must then offer the
shares forfeited for public auction within six weeks of the call becoming payable.
17.1
17.2
17.3
17.4
17.5
17.6
17.7
17.8
17.9
17.10
17.11
17.12
17.13
17.14
17.15
17.16
17.17
17.18
17.19
The issue of 250,000 shares to General Resources GmbH at $0.048 per share in lieu of services
provided.
The issue of 600,000 shares to SConsortium at $0.05 per share in lieu of services provided.
The issue of 100,000 shares to Francois Dumas Consulting at $0.05 per share in lieu of services
provided.
The issue of 300,000 shares to Horn Resources C/- Rymill at $0.048 per share in lieu of services
provided.
The issue of 19,025,000 shares at $0.04 per share via private share placement.
The issue of 935,278 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.039 per share.
The issue of 110,903 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.031 per share.
The issue of 105,517 shares to consultant at $0.031 per share.
The issue of 2,081,819 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.0309 per share.
The issue of 1,061,433 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.0301 per share.
The issue of 57,127,998 shares at $0.03 per share via private share placement.
The issue of 37,700,063 shares at $0.03 per share via share purchase plan.
The issue of 15,280,667 shares at $0.03 per share via private share placement.
The issue of 425,652 shares to consultant at $0.031 per share in lieu of services provided.
$3,250 of these shares were issued to settle amounts payable at 30 June 2016.
The issue of 196,640 shares to consultant at $0.03 per share in lieu of services provided.
The issue of 1,643,218 shares to Horn Resources C/- Rymill at $0.03 per share in lieu of services
provided. $45,600 of these shares were issued to settle amounts payable at 30 June 2016.
Thie issue of 1,074,974 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.0301 per share.
The issue of 254,128 shares to consultant at $0.0295 per share in lieu of services provided.
The issue of 203,664 shares to Horn Reousrces C/- Rymill at $0.0295 per share in lieu of
services provided.
79
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 17: Contributed equity (continued)
17.20 The issue of 40,779 shares for the conversion of partly paid shares at $0.049 per share.
The issue of 1,818,167 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.0236 per share.
17.21
17.22 The issue of 423,819 shares to consultant at $0.0236 per share in lieu of services provided.
17.23
The issue of 508,583 shares to Horn Resources C/- Rymill at $0.0236 per share in lieu of services
provided.
17.25
17.27
17.26
17.24 The issue of 692,151 shares to Dakota Minerals at $0.0217 for acquisition of exploration licence.
The issue of 3,902,596 shares to directors and senior management via director fee and
remuneration sacrifice share plan at $0.0137 per share.
The issue of 2,001,351 shares to consultant and Horn Resources C/- Rymill at $0.0137 per share
in lieu of services provided.
The issue of 275,179 shares to James Guy and associates at $0.0140 per share in lieu of services
provided.
Shares to be issued to consultant in lieu of services. Shares have not yet been issued, with the
number of shares to be determined at issue date, dependent on the market share price.
For the year 2017, the payment of costs incurred by the company in relation to equity raising and
listing of the company’s shares and of $236,515 (2016: $96,866).
The issue of 87,381,076 partly paid contributing shares (deemed to be paid to $0.001, unpaid
$0.049) pursuant to non-renounceable entitlement issue. There was no cash consideration upon
the issue of these shares. The Company will not make any call in respect of the unpaid amount
within the first 6 months of issue. After the date the Company will not call more than $0.02 in any 6
month period.
17.30
17.28
17.29
Note 18: Share based payment reserve
Reconciliation of total options on issue:
Options issued
as share-based
payments
Other options
issued
Reserved
shares
issued
Total
options on
issue
As at 1 July 2015
Issued during the year
4,042,188
3,500,000
1,000,000
14,250,000
8,192,188
3,150,000
- 17,750,000
Expired during the year
(2,050,000)
(300,000)
-
(2,350,000)
As at 30 June 2016
Issued during the year
Expired during the year
5,492,188
3,054,503
14,950,000
-
3,150,000
-
23,592,188
3,054,503
-
(700,000)
-
(700,000)
As at 30 June 2017
8,546,691
14,250,000
3,150,000
25,946,691
80
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 18: Share based payment reserve (continued)
Option-based payments
Outstanding at 1 July
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at 30 June
Exercisable at 30 June
2017
2017
Number WAEP
20,442,188 $0.0778
2016
Number
2016
WAEP
5,042,188 $0.1899
3,054,503 $0.0375
17,750,000 $0.0700
-
-
-
-
-
-
(700,000) $0.2500
(2,350,000)
$0.2593
22,796,691 $0.0671
20,442,188
$0.0778
22,796,691 $0.0671
20,442,188
$0.0778
The weighted average remaining contractual life of share options outstanding as at 30 June 2017 was 1.26
years (2016: 1.14 years).
The exercise price of options granted during the year was $0.0375 (2016: $0.07).
The range of exercise prices for options outstanding at the end of the year was $0.0375 to $0.087 (2016:
$0.07 to $0.60).
Reconciliation of value of share-based payment reserve
30-Jun-17
30-Jun-16
Note
$
$
At the beginning of reporting year
Amount expensed for options issued to consultant.
3,500,000 options with exercise price of $0.07
Amount expensed for options issued to consultant.
3,054,503 options with exercise price of $0.0375
At the end of the reporting year
18.1
18.2
648,934
628,908
-
20,026
39,709
-
688,643
648,934
18.1 The issue of 3,500,000 $0.07 options exercisable on or before 30 November 2018 to consultant.
Please refer to Note 19 for further explanation.
18.2 The issue of 3,054,503 $0.0375 options exercisable on or before 30 June 2019 to consultant.
Please refer to Note 19 for further explanation.
81
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 19: Equity based payments
Expenses arising from share-based payment and option-based payment transactions
Total expenses arising from share-based payment transactions recognised during the year were as follows:
Options issued in consideration for servcies. Refer to note 18.2
and note 19.1.
Shares issued under the director and senior management fee
and remuneration sacrifice share plan. Refer to notes 17.17,
17.21 & 17.25.
Shares issued in consideration of services to consultants. Refer
to notes 17.14, 17.16, 17.18, 17.19, 17.22, 17.23, 17.26, 17.27
& 17.28.
Options issued to consultants recognised as share issue costs
in equity. Refer to note 18.2 and note 19.1
Shares issued to consultant for capital raising services
recognised as share issue costs in equity. Refer to note 17.15
30-Jun-17
30-Jun-16
-
20,026
128,699
128,560
80,501
3,272
209,200
151,858
39,709
-
5,899
-
45,608
-
Note 19.1
During the 2017 financial year, in total 3,054,503 options were issued to consultants for equity raising
services, which was recognised as part of issued capital. These options had a fair value of $39,709
calculated using a black scholes model.
During the 2016 financial year, in total 3,500,000 options were issued to consultants for consulting services.
These options had a fair value of $20,026 calculated using a black scholes model.
The fair value of the options granted for the year ended 30 June 2017 and 30 June 2016 was estimated on
the date of grant using the following assumptions and valuing using a black scholes model, the fair value of
the services provided was consider to equal the fair value determined using the black scholes model:
Number of options issued
Dividend yield (%)
Expected volatility* (%)
Risk-free interest rate (%)
Expected life (years)
Share price
Exercise price ($)
Value per option
30-Jun-17
3,054,503
Nil
75
1.5
3
$0.0300
$0.0375
$0.013
30-Jun-16
3,500,000
Nil
75
2.0
3
$0.024
$0.070
$0.006
In addition to the above, the company issued 692,151 shares for the acquisition of exploration licence. See
note 17.24 for further details.
All shares issued as equity-based payments were issued for nil cash consideration and were valued at
market fair value which was considered to approximate the fair value of the services provided.
82
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 20: Commitments
(i) The Company has certain obligations with respect to tenements and minimum expenditure
requirements on areas, as follows:
Within 1 year
1 to 2 years
Total
30-Jun-17
$
618,000
618,000
1,236,000
30-Jun-16
$
1,206,000
1,206,000
2,412,000
The commitments may vary depending upon additions or relinquishments of the tenements, as well as
farm-out agreements. The above figures are based on the mines department Emits reports as at 30 June
2017. These figures are adjusted at the anniversary date of each tenement and therefore the total can
change on a monthly basis.
(ii) Mr Patrick McManus was appointed as Managing Director on 23 November 2010. Pursuant to a revised
agreement dated 23 November 2010, his reviewed salary is set at $275,000 per annum inclusive of
compulsory superannuation effective from 1 July 2013. The agreement can be terminated by either party
by giving three months' notice or payment of three months' salary in lieu of notice being $68,750.
Note 21: Contingent liabilities
There are no contingent liabilities as at 30 June 2017 (2016: Nil).
Note 22: Related party transactions
Corporate advisory were paid to Precious Capital Pte Ltd, a company
of which Chew Wai Chuen is a director and shareholder
Fees were paid to Horn Resources Pty Ltd, a company of which
Robert Van der Laan is a director and shareholder.
Fees included investor relations, corporate advisory, office
accommodation, accounting staffs (excluding fees directly related to
Robert Van der Laan), administrative staffs and exploration staffs.
Fees are considered to be on normal commercial terms and
conditions.
30-Jun-17
$
30-Jun-16
$
9,454
9,708
148,526
157,980
213,100
222,808
83
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 23: Cash flow information
30-Jun-17
$
30-Jun-16
$
Reconciliation of cash flow from operations with loss from ordinary activities after income tax
Loss from oridnary activities after income tax
Share of net losses of associate
Depreciation and amortisation
Expenses settled via equity issues
Option and exclusivity fee received
Gain on deconsolidation of subsidiary
Loss (gain) on disposal of financial assets
Impairment of financial assets
Impairment of investment in associate
Changes in assets and liabilities
Increase/(decrease) in deferred tax liabilities
(Increase)/decrease in receivables
(Increase)/decrease in other assets
Increase/(decrease) in payables
Increase/(decrease) in provisions
Net cash flows used in operating activities
(1,784,884)
760,436
14,931
209,200
(151,367)
(3,780,837)
333,017
1,064,921
1,453,305
385,871
7,920
38,155
(75,628)
(151,667)
(1,676,627)
(184,648)
-
12,241
151,858
(98,649)
-
(2,834,320)
969,773
-
-
42,216
13,860
100,519
9,660
(1,817,490)
Note 24: Financial risk management objectives and policies
The Company’s principal financial instruments comprise cash and short term deposits. The main purpose of
the financial instruments is to finance the Company’s operations. The Company also has other financial
instruments such as trade debtors and creditors which arise directly from its operations. The main risks
arising from the Group’s financial instruments are interest rate risk, credit risk and equity price risk. The
board reviews and agrees policies for managing each of these risks and they are summarised below:
Interest Rate Risk
(a)
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate
as a result of changes in market interest rates and the effective weighted average interest rate for each
class of financial assets and financial liabilities is set out in the following table. Also included is the effect on
profit and equity after tax if interest rates at that date had been 10% higher or lower with all other variables
held constant as a sensitivity analysis.
The Group has not entered into any hedging activities to manage interest rate risk. In regard to its interest
rate risk, the Group continuously analyses its exposure. Within this analysis consideration is given to
potential renewals of existing positions, alternative investments and the mix of fixed and variable interest
rates.
Weighted
Average
Effective
Interest Rate
%
Floating
Interest
Rate
$
Fixed
Interest
Rate
$
Non
Interest
Bearing
$
Interest Rate
Risk Sensitivity
-10%
10%
Total
$
Profit Equity Profit Equity
$
$
$
$
1.25
2017
Financial
Assets
Cash
Receivables
Total Financial Assets
Financial
Liabilities
Trade creditors
Total Financial Liabilities
1,881,039
-
1,881,039
-
-
-
-
23,898
23,898
1,881,039
23,898
1,904,937
-1,975
-1,975
1,975
1,975
-
-
-
-
186,294
186,294
186,294
186,294
84
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 24: Financial risk management objectives and policies (continued)
Weighted
Average
Effective
Interest Rate
%
Floating
Interest
Rate
$
Fixed
Interest
Rate
$
Non
Interest
Bearing
$
Interest Rate
Risk Sensitivity
-10%
10%
Total
$
Profit Equity Profit Equity
$
$
$
$
1.25
2016
Financial
Assets
Cash
Receivables
Total Financial Assets
Financial
Liabilities
Trade creditors
Total Financial Liabilities
444,185
-
444,185
194,715
-
-
33,422
- 228,137
638,901
33,422
672,323
-466
-466
466
466
-
-
-
-
429,447
429,447
429,447
429,447
A sensitivity of 10% (2016: 10%) has been selected as this is considered reasonable given the current
level of both short term and long term Australian dollar interest rates. A -10% sensitivity would move short
term interest rates at 30 June 2017 from around 1.25% to 1.13% (2016: 1.25% to 1.13%) representing a
12.0 basis points (2016: 12.0 basis points), which is 8.5 basis points (2016: 8.5 basis points) net of tax.
Based on the sensitivity analysis only interest revenue from variable rate deposits and cash balances is
impacted resulting in a decrease or increase in overall income.
Liquidity Risk
(a)
The Company manages liquidity risk by maintaining sufficient cash reserves and marketable securities
required to meet the current exploration and administration commitments, through the continuous
monitoring of actual cash flows.
All payables are due within 30 days, which is consistent with the prior year.
Fair Values
(b)
For financial assets and liabilities, the net fair value approximates their carrying value. No financial assets
and financial liabilities are readily traded on organised markets in standardised form except for available for
sale financial assets which are valued at market value as traded on the ASX and are considered to be level
1 in the fair value heirarchy.
(c) Credit Risk
Credit risk arises in the event that counterparty will not meet its obligations under a financial instrument
leading to financial losses. The Consolidated entity is exposed to credit risk from its operating activities,
financing activities including deposits with banks. The credit risk control procedures adopted by the
Consolidated entity is to assess the credit quality of the institution with whom funds are deposited or
invested, taking into account its financial position and past experiences.
The maximum exposure to credit risk on financial assets of the Consolidated entity which have been
recognised on the statement of financial position is generally limited to the carrying amount.
Cash is maintained with National Australia Bank.
85
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A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 24: Financial risk management objectives and policies (continued)
(d)
Equity price risk
The Group’s listed equity securities are susceptible to market price risk arising from uncertainties about
future values of the investment securities. The Group manages the equity price risk through the Group’s
Board of Directors reviewing and approving all equity investment decisions. At the reporting date, the
exposure to listed equity securities recognised as available-for-sale financial assets was $541,609.
A decrease of 10% on the ASX market index could have an impact of approximately $54,161 on the income
or equity attributable to the Group, depending on whether the decline is significant or prolonged. An
increase of 10% in the value of the listed securities would only impact equity, but would not have an effect
on profit or loss.
Note 25: Controlled entities
Parkway Minerals NL is the ultimate parent entity of the consolidated group.
The following are controlled entities at the reporting date and have been included in the consolidated
financial statements. All shares held are ordinary shares.
Name
Dandaragan Trough Holdings
Pty Ltd
K- Max Pty Ltd
East Exploration Holdings Pty
Ltd
East Exploration Pty Ltd
East Exploration GmbH
Country of
Incorporation
Percentage
Interest Held %
2017 2016
Australia
Australia
Australia
Australia
Germany
100% 100%
100% 100%
100% 100%
0% 55%
0% 55%
Principal activities
Dormant
Dormant
Dormant
Mineral exploration
Mineral exploration
During the previous financial year Davenport paid to East Exploration the option and exclusivity fee
amounting to $250,000. This fee is non-refundable. For the this period, the portion of the fee relationg to
the expenditure has been recognised as income in East Exploration, amounting to $151,367 (2016:
$98,649). The sale was completed on 19 January 2017 and the Company has received 19,249,922
Davenport Resources Limited shares as the consideration for its interest in East Exploration Pty Ltd. Refer
to note 12 for more details. In the prior year the consolidated entity recognised $152,290 as assets
included in disposal group held for sale and $151,351 as liabilities included in disposal group held for sale
as follows:
Cash and cash equivalents
Other assets
Total assets
Deferred income
Total liabilities
$
151,354
936
152,290
151,351
151,351
As at 30 June 2017, there are no commitment or contingent liabilities in respect of the controlled entities.
86
Parkway Minerals NL
A.C.N. 147 346 334
Notes to Financial Statements (continued)
Note 26: Parent entity disclosure
Assets
Current assets
Non current assets
Total Assets
Liabilities
Current liabilities
Non current liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Loss for the year
Other comprehensive income
Total comprehensive loss for the financial
year
Note 27: Subsequent events
Parent
30-Jun-17
Parent
30-Jun-16
1,917,247
3,175,654
5,092,901
249,401
22,619
272,020
520,032
4,480,819
5,000,851
499,316
499,316
4,820,881
4,501,535
20,981,821
688,643
(16,849,583)
4,820,881
(3,068,037)
-
17,634,147
648,934
(13,781,546)
4,501,353
(178,550)
-
(3,068,037)
(178,550)
Subsequent to the reporting date, the Company undertook a capital raising, raising a total of $850,000
before costs at $0.01 per share. A total of 85,000,000 ordinary shares have been issued as a result of the
capital raising. The Company has also announced share purchase plan, expected to raise an additional $1
million.
There have not been any other matters that have arisen after balance date that have significantly affected,
or may significantly affect, the operations and activities of the Company, the results of those operations, or
the state of affairs of the Company in future financial years other than disclosed elsewhere in this annual
report.
87
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A.C.N. 147 346 334
Directors’ Declaration
In the opinion of the directors of Parkway Minerals NL:
(a)
the financial statements and notes set out on pages 51 to 87 are in accordance with the
Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the financial position of the Company as at 30 June 2017
and of its performance, as represented by the results of its operations and its cash
flows, for the year ended on that date; and
complying with Accounting Standards in Australia and the Corporations Regulations
2001;
(b)
(c)
the financial statements and notes also comply with International Financial Reporting
Standards as disclosed in Note 2(c); and
subject to the matters discussed in Note 2(f), there are reasonable grounds to believe that the
Company will be able to pay its debts as and when they become due and payable.
This declaration has been made after receiving the declarations required to be made to the directors in
accordance with section 295A of the Corporations Act 2001 for the year ending 30 June 2017.
This declaration is made in accordance with a resolution of the directors.
Patrick McManus
Managing Director
Perth
Dated: 29 September 2017
88
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11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Independent Auditor's Report to the Members of Parkway Minerals NL
Report on the audit of the financial report
Opinion
We have audited the financial report of Parkway Minerals NL (the Company) and its subsidiaries
(collectively the Group), which comprises the consolidated statement of financial position as at 30 June
2017, the consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the year then ended, notes to the financial statements,
including a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
a)
b)
giving a true and fair view of the consolidated financial position of the Group as at 30 June 2017
and of its consolidated financial performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting
Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Material uncertainty related to going concern
We draw attention to Note 2(f) of the financial report, which describes the principal conditions that raise
doubt about the Group’s ability to continue as a going concern. These events or conditions indicate that a
material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going
concern. Our opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial report of the current year. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate
opinion on these matters. In addition to the matter described in the Material Uncertainty related to Going
Concern section, we have determined the matters described below to be the key audit matters to be
communicated in our report.
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We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the financial report. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis for our audit opinion on the accompanying
financial report.
1. Carrying value of exploration and evaluation assets
Why significant
How our audit addressed the key audit matter
The assessment of the carrying value of
exploration and evaluation assets for impairment
is subjective, as it is based on the Group’s ability
and intention to continue to explore the asset.
The carrying value may also be adversely
affected by the results of exploration work
indicating that the mineral reserves may not be
commercially viable for extraction. This creates a
risk that the amounts stated in the financial
report may not be recoverable.
Refer to Note 11 – Exploration expenditure to
the financial report for the amounts held by the
Group as at 30 June 2017 and related
disclosure.
We evaluated the Group’s assessment of the carrying
value of exploration and evaluation assets. In
obtaining sufficient audit evidence, we:
• considered the Group’s right to explore in the
relevant exploration area which included
obtaining and assessing supporting
documentation such as license agreements;
• considered the Group’s intention to carry out
significant exploration and evaluation activity in
the relevant exploration area which included
assessment of the Group’s cash-flow forecast
models, enquiries with senior management and
Directors as to the intentions and strategy of the
Group;
• evaluated the Group’s assessment of the
commercial viability of results relating to
exploration and evaluation activities carried out
in the relevant licensed area; and
• assessed the ability to finance any planned future
exploration and evaluation activity.
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2. Investment in Davenport Resources Limited
Why significant
How our audit addressed the key audit matter
During the year the Group disposed of its 55%
interest in East Exploration Pty Ltd in exchange
for a 26% interest in Davenport Resources
Limited. The accounting treatment and
disclosure of this transaction involved significant
judgements in determining the classification of
the investment as an associate in accordance
with AASB 128: Investments in associates and
joint ventures and the assessment of whether
the investment was impaired as at 30 June
2017.
Refer to note 12 for further details of this
transaction.
We evaluated the Group’s accounting for the
investment in Davenport Resources Limited as
follows:
• considered the calculation of the loss on disposal
of East Exploration Pty Ltd, and the
determination of the initial value of the
investment in Davenport Resources Limited;
• considered the appropriateness of the Group’s
assessment that the investment in Davenport
Resources Limited meets the criteria of an
investment in an associate in accordance with
AASB 128: Investments in associates and joint
ventures;
• evaluated the Group’s assessment of impairment
of the investment in Davenport Resources
Limited as at 30 June 2017. This included
comparing the carrying value of the investment
to the market value of Davenport Resources
Limited shares as at 30 June 2017, in order to
assess whether the fair value less cost of disposal
was higher than the carrying value of the
investment as at that date.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the information
included in the Group’s 2017 Annual Report, but does not include the financial report and our auditor’s
report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report and
our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error.
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In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
•
•
•
•
•
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as
a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
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We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on the audit of the remuneration report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 23 to 32 of the directors' report for the year
ended 30 June 2017.
In our opinion, the Remuneration Report of Parkway Minerals NL for the year ended 30 June 2017,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
Ernst & Young
V L Hoang
Partner
Perth
29 September 2017
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Parkway Minerals NL
A.C.N. 147 346 334
Shareholder Information
Distribution schedules of shareholders and statements of voting rights are set out in Table 1, whilst the
Company’s top twenty shareholders and option holders are shown in Tables 2, 3 and 4. Substantial
shareholder notices that have been received by the Company are set out in Table 5.
Table 1
Shareholder spread as at 20 September 2017
Ordinary shares, with right to attend meetings and vote personally or by proxy, through show of
hands and, if required, by ballot (one vote for each share)
Spread of Holdings
No. Holders
PWN
No. Holders
PWNCA
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001 - and over
109
190
148
766
436
228
437
226
646
177
Total number of holders of securities
Total number of securities
1,649
444,144,634
1,714
123,300,321
Table 2
Top twenty shareholders as at 20 September 2017
Shareholder
No. Shares
Percentage
1 Citicorp Nominees Pty Limited
2 Wah Len Enterprise SDN BHD
3 HSBC Custody Nominees
4 Querion Pty Ltd
5 Mr Philip Anthony Feitelson
6 Yap Thai Choy
7 Flourish Super Pty Ltd
8 PAGONDAS PTY LTD
9 LIM EE TATT
10 Mr Patrick Bernard Mc Manus & Mrs Vivienne Edwina Mc Manus
11 Mr Adrian Christopher Griffin
12 Mr Xuan Khoa Pham
13 TINNIPLEX PTY LTD
14 PHILIP ANTHONY FEITELSON
15 MR ROBERT VANDERLAAN & MR ADRIAN GRIFFIN &
MR RINIAN RUTHERFORD
16 BNP Paribas Noms Pty Ltd
17 Buzz Monty Pty Ltd
18 MR BRETT JAMES SMITH & MRS LYNNE SMITH
19 MR JOHN STEPHEN BLADON
20 TORBINUP RESOURCES PTY LTD
51,915,476
16,666,666
14,402,023
13,000,000
12,415,000
12,000,000
11,787,628
10,000,000
10,000,000
8,992,357
7,027,991
6,900,000
6,000,000
5,085,000
5,000,000
4,415,020
4,250,000
4,062,822
3,607,814
3,478,057
211,005,854
11.689
3.753
3.243
2.927
2.795
2.702
2.654
2.252
2.252
2.025
1.582
1.554
1.351
1.145
1.126
0.994
0.957
0.915
0.812
0.783
47.508
94
Parkway Minerals NL
A.C.N. 147 346 334
Shareholder Information (continued)
Table 3
Top twenty partly paid shareholders as at 20 September 2017
Shareholder
No. Shares
Percentage
1 Citicorp Nominees Pty Limited
2 HSBC Custody Nominees (Australia) Limited
3 Wah Len Enterprise SDN BHD
4 MRS ANJANA NANDHA
5 QUERION PTY LTD
6 MR PHILIP ANTHONY FEITELSON
7 YAP THAI CHOY
8 MR ADRIAN CHRISTOPHER GRIFFIN
9 MR JOHN STEPHEN BLADON MILLWARD
MR STEVEN VARGA
10 TORBINUP RESOURCES PTY LTD
11
12 MR ROBERT PETER VAN DER LAAN
13 MR ADRIAN CHRISTOPHER GRIFFIN
14 ROBERIN PTY LTD
15 Mr Patrick Bernard Mc Manus & Mrs Vivienne Edwina Mc Manus
16 SEPT ROGUES LTD
17 POTASH WEST NL
18 MR GREGORY JOHN MILLER
19 SUPER MSJ PTY LTD
20 BNP PARIBAS NOMS PTY LTD
11,938,101
5,505,412
4,166,667
3,500,000
3,125,000
3,000,000
3,000,000
2,719,635
2,665,861
2,648,544
2,500,000
1,800,045
1,767,998
1,553,615
1,410,831
1,370,837
1,362,500
1,204,114
1,200,000
1,103,755
9.682
4.465
3.379
2.839
2.534
2.433
2.433
2.206
2.162
2.148
2.028
1.460
1.434
1.260
1.144
1.112
1.105
0.977
0.973
0.895
57,542,915
46.669
95
Parkway Minerals NL
A.C.N. 147 346 334
Shareholder Information (continued)
Table 4
Top twenty option holders as at 20 September 2017
Optionholder
1 M & K Korkidas Pty Ltd
2 Bellaire Capital Pty Ltd David
Greenblatt
3 MR KONSTANDINOS TSAMASIROS
4 Nutsville Pty Ltd
5 Ms Merle Smith & Ms Kathryn Smith
6 MR ANDREW JOHN MEEK &
MS SASKIA ELLE MEEK
7 MR JAMES ROBERT DENNISON
8 BUZZ MONTY PTY LTD
9 BUZZ MONTY PTY LTD
10 MR DENNIS BELL>
11 DAVSMS INVESTMENTS PTY LTD
12 MR BRETT JAMES RUDD
13 MR CHRISTOPHER WILLIAMS
14 CITICORP NOMINEES PTY LTD
15 MR MARK RICHARD JONES &
MS MARGARET TAI
16 Magna Equities II LLC
17 Demasiado Pty Ltd < Demasiado Family A/C>
18 Dropmill Pty Ltd
19 MR BRENDON MOSEL
20 JANAFIELD PTY LTD
Table 5
Substantial shareholders as at 20 September 2017
Shareholder
Citicorp Nominees Pty Limited
Voting Rights
No. Options
Percentage
3,150,000
1,500,000
1,000,000
750,000
750,000
727,487
650,000
625,000
625,000
625,000
517,834
500,000
500,000
500,000
400,000
312,500
290,240
250,000
221,036
200,000
17.746
8.451
5.634
4.225
4.225
4.099
3.662
3.521
3.521
3.521
2.917
2.817
2.817
2.817
2.254
1.761
1.635
1.408
1.245
1.127
14,094,097
79.403
No. of shares Percentage
11.689%
51,915,476
The voting rights attached to each class of equity securities are set out below.
(a) Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and
upon a poll each share shall have one vote.
96
Parkway Minerals NL
A.C.N. 147 346 334
Shareholder Information (continued)
Unlisted options as at 30 June 2017
Details of unlisted option holders are as follow:
Class of unlisted options
No. Options
Options exercisable at $0.087 on or before 6 November 2017
1,992,188
Holders of more than 20% of this class
2
Options exercisable at $0.0375 on or before 30 June 2019
3,054,503
Holders of more than 20% of this class
1
97
Parkway Minerals NL
A.C.N. 147 346 334
Tenement Register
Tenements (Australia) as at 20 September 2017
Tenements Name
Project
Holder
Details
Dinner Hill
E70/3987
Richmond Resources Pty Ltd
100% Mineral Rights for Potash
Jam Hill
Bald Hill
E70/4137
Parkway Minerals NL
100% Mineral Rights for Potash
E70/4138
Parkway Minerals NL
100% Mineral Rights for Potash
Watheroo
E70/4471
Parkway Minerals NL
100% Mineral Rights for Potash
Dandaragan
E70/4609
Parkway Minerals NL
100% Mineral Rights for Potash
Dandaragan
E70/4687
Parkway Minerals NL
100% Mineral Rights for Potash
Lake Barlee
E77/2347
Parkway Minerals NL
100% Mineral Rights for Potash
Lake Barlee
E29/985
Parkway Minerals NL
100% Mineral Rights for Potash
Lake Barlee
E77/2409
Parkway Minerals NL
100% Mineral Rights for Potash
Lake Barlee
E57/1051
Parkway Minerals NL
100% Mineral Rights for Potash
Lake Barlee
E29/1003
Parkway Minerals NL
Pending
Lake Barlee
E29/1015
Parkway Minerals NL
Pending
Lake Barlee
E29/1027
Parkway Minerals NL
Pending
Lake Barlee
E77/2450
Parkway Minerals NL
Pending
Lake Barlee
E77/2451
Parkway Minerals NL
Pending
Lake Barlee
E77/2452
Parkway Minerals NL
Pending
Lake Barlee
E77/2445
Parkway Minerals NL
Pending
Lake Barlee
E77/2446
Parkway Minerals NL
Pending
Lake Barlee
E77/2447
Parkway Minerals NL
Pending
98